Taxes owed

Forum|Forum|2 years ago
February 23, 2024
1 reply
15 views

Hello,

I haven't been able to get a clear answer without going to a cpa. I am HoH/2dependents. In 2022 I made 57027 and got a refund in 2023 I made 108975 and owed a couple thousand in taxes seems like not enough was taken out. Question is why? I had the same status. I did go exempt the last 2 checks of the year maybe that's why ?

BillM223

Level 15

The amount you are refunded at the end of the year is a function of gross income (which varies), tax rates (which vary), deductions, tax law changes (all too common), and withholding, which varies.

The IRS has been fine-tuning the withholding table for the last several years, meaning that there is no reason to think that this isn't the issue.

You might use the TurboTax 2023 Tax Calculator (it should be close enough for 2024) to get a handle on how much you might owe, then when you do your W-4 for 2024, make sure that it is withholding the amount you want.

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jrodriguez20842Author

Level 2

This just doesn't give me a breakdown as to why. Just random possibilities as to why. Is it becuase I earned more ? How much should be taken out each check? How much taxes should have been taken out ? Like I said nothing changed just the amount I earned. Based on what I earned in 2023 with the same status and nothing special. How much taxes should have been taken out?

Cynthiad66

Level 14

We do not see your return and can only speculate based on the information provided. Your salary nearly doubled for one thing. Did your children still qualify for the Child Tax Credit or perhaps one or more of them was 17? If so, No credit. You would not qualify for quite a few things because of your income. You can do a comparison of the two returns to identify the differences.

Many events may reduce your refund, including:

Starting an additional job (especially self-employment).
Getting a significant raise, but your W-4 staying the same.
Adjusting your withholding to maximize your take-home pay.
Selling stock, crypto, or other investments.
A change in filing status.
Receiving unemployment benefits, but not having taxes withheld.
Taking an early withdrawal from your retirement account.
Having a child turn 17 in 2023, now receiving the Credit for Other Dependents instead of the Child Tax Credit.
Started receiving Social Security benefits or Roth IRA distributions.
Paying off your mortgage, so you can no longer deduct mortgage interest.
Paying off your student loan, so you can no longer deduct the interest.
Finishing school, so no longer eligible for certain education credits.
Earning little or no income and not qualifying for the Earned Income Credit.

You can access your personalized refund information in TurboTax:

Open or continue your return.
Select Federal in the left menu.
Choose Federal Review.
Under the Explain Why section of the Federal Review screen, select Why am I getting a refund of $? to see more details on your refund and how it was calculated.

If your refund seems extremely off, double-check the amounts you entered. A typo of just one dollar can have a big impact on your refund.

Video on Why Refund Is Less

@jrodriquez20842

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