Trying to Figure why we owe 2018 return

[macher]

My tax preparer isn't doing tax prep service anymore. So I'm doing it myself on TT.

Was diagnosed and was battling with cancer early last year and didn't get my 2018 taxes done. I started doing my 2019 returns and it looks like we are getting around $900 return. Then had to download a 2018 TT version. Started to go through it and it's coming up that we owe $1105? As long as I can remember we never ever owed anything. When our kids were much younger we would get $3000 plus returns.

Anyway I'm concerned about 2018 and if I did something wrong that we owe. Any suggestions what I can go through to figure this out? Weird that we are getting $900 return 2019 and owe $1105 2018.

Thanks!

[ee-ea]

See this FAQ  https://ttlc.intuit.com/community/refunds/help/why-did-my-refund-go-down-compared-to-last-year-s/00/...

Also make a line by line comparison  of the returns.

[JotikaT2]

It depends.

There were a lot of changes that took effect for the 2018 tax returns.  The standard deduction increased, taxes were limited to $10,000 for itemized deduction purposes, as a new limits on the amount that could be deducted for mortgage interest depending upon your outstanding loan balance.

The best thing to do is to compare your return as you have prepared in 2019 to the return you are preparing for 2018.

• Did you earn more income or did your withholdings change between both years?
• Were you eligible for a tax credit that you haven't claimed
• Did you file using a different filing status this year (for example, married to single)?

The changes can be due to a variety of factors.  

[sajobro]

This is a broad question, so these answers are broad too, pertaining to Federal

Since you are new to TT, go to forms and click through each form and get acquainted with the data and worksheets. Compare to your documents from the previous year. For instance, review the tax documentation  from your tax accountant from the previous year to make sure you are not missing any potential deductions from carryovers.

If you didn't file for an extension, you will have a penalty to pay.

Starting in 2018, mortgage interest was capped at 10K, so anything in excess of 10K is not deductible.

If one of your children is above 17 than the child tax credit doesn't apply and instead you may have only a $500 credit toward other dependent until age 19 (I think).

Itemize your medical expenses to see if they qualify for a deduction.

Check to see if the Standard deduction was applied instead of itemized deduction.

Good luck!

[macher]

@JotikaT2If we are getting $880 back 2019 and we owe $1105 for 2018 would the IRS withhold the $880 return and apply it to the $1105 we owe= $225 we owe?

[JotikaT2]

They might. 

The only way to get a definite answer is to contact the IRS directly, but it is completely possible they will apply your 2019 tax return to an existing tax obligation.

IRS refund status