turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

putterlee
New Member

Our income increased by 17,613 but we are still in the same tax bracket as before. However, this year we owe $3.5K instead of being owed. Is this possibly correct?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
MaryK4
Expert Alumni

Our income increased by 17,613 but we are still in the same tax bracket as before. However, this year we owe $3.5K instead of being owed. Is this possibly correct?

It is possible- unfortunately, it depends on the amount of withholding.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Our income increased by 17,613 but we are still in the same tax bracket as before. However, this year we owe $3.5K instead of being owed. Is this possibly correct?

Yes, for three possible reasons.

1) If you did not adjust your W-4 for the additional income settings, such as withholding additional taxes out of every paycheck, you would certainly owe extra.

2) If you are an ACA participant when your income exceeds what is allowed for the payment assistance, you will have to pay it back (something that hit me very hard this year). 

3) The tax tables had been reset to give you more income back in your paycheck, but unfortunately, at the end of the year, you wind up owing if you do not reset your W-4 to adjust for this. 

I had about the same increase in income you guys had this year and we have to pay back around $5,500, a combination of not resetting my W-4 to account for the fact that we had two full-time, full-year incomes again finally, but also paying back the credit on the ACA. I had not planned for either one. Yikes!

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies