Turbotax calculating tax wrong

Forum|Forum|4 years ago
March 15, 2022
3 replies
30 views

turbotax has me owing 12K this year which with my taxable income would be a 31 percent tax. I am in the 12% tax bracket. how is it calculating it wrong?

FangxiaL

Alumni - Intuit

Double-check to make sure that you did not miss any credits that you are entitled to.

There are a variety of reasons why you may owe taxes this year, including receiving unemployment income or taking on an additional job. If a dependent turned 18, it could lower your Child Tax Credit to $500 instead of $2,000 or $3000.

Some of the most common reasons for owing taxes include:

Additional income without increasing withholdings
Fewer deductions
Fewer credits
Change in filing status

For more detailed information, please refer to this help article Why do I owe taxes?

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MDcomAuthor

Level 2

i should have saved the file to show what went on. i checked the number several times. married filing joint 3 dependents including under 16. all that was figured in. 24K standard deduction checked. weird but today I am getting completely different results.

BillM223

Level 15

"weird but today I am getting completely different results."

Does this means that today you are being assessed the tax you expect?

If not, in addition to what FangxiaL listed above, I have found that going from employee to self-employed status often offers quite the sticker shock. This is because in addition to your 12% federal income tax, you also have to pay self-employment taxes (the equivalent of Social Security and Medicare - only you have to pay all 15.3% of it and not share it with your employer).

This means that instead of being taxed at 12%, you are taxed at 27.3% (12% + 15.3%) - I have seen taxpayers make a new business and think that they are well-off, until they see the tax bill.

Well, hopefully, things have righted themselves.

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