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$5,000 less income in 2019 - Tax same as in 2018.

I used TurboTax for both my 2019 and 2018 returns.  My 2019 taxable income is $85,999. 2018 taxable income was $91,004. Taxes for 2019 are $9,780. Taxes for 2018 were $9,823. $5,000 less income and only $43 less in taxes. WHY!!!

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$5,000 less income in 2019 - Tax same as in 2018.

The question was resolved by reviewing Form 1040 Line 12a Qualified Dividends and Capital Gain Tax Worksheet.

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2 Replies
GiseleD
Expert Alumni

$5,000 less income in 2019 - Tax same as in 2018.

Did your filing status change between 2018 and 2019? Different filing statuses are subject to different tax rates and different standard deductions. The filing status with the most favorable standard deduction and tax rates is Married Filing Jointly.

 

To check your 2018 filing status, look at the very top of your 2018 1040. To check your 2018 standard deduction for your filing status, check the bubble next to question 8 on page 2 of your 2018 1040.

 

Another change may be due to ineligibility for certain credits or deductions in 2019. You may have been eligible for certain credits/deductions in prior years, but life changes in 2019 made you ineligible for these same credits. 

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$5,000 less income in 2019 - Tax same as in 2018.

The question was resolved by reviewing Form 1040 Line 12a Qualified Dividends and Capital Gain Tax Worksheet.

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