Understanding Income Section

[MTV]

I am using Turbotax Premier 2022 and am experiencing some confusion in the income section. I am retired, but I work 3 part-time jobs. Total income is well under $100,000 per year. I entered 3 different W-2 forms and the software showed the FED owing me $1,295. Then I enter a 1099-R (my pension) and now I owe $67. I decide to play with the software and create a new filing with everything being the same, but I just entered the 1099-R and it showed the FED owing me $640. Why the difference between wiping out $1,295 and owing $67 versus receiving $640 with just the 1099-R entered?

[MarilynG1]

If you have three part-time jobs with W-2's, you may not have had enough Federal Tax withheld (or any) for the total of these incomes. Employers are not required to withhold tax under certain income levels, but if you have several of these incomes, you may end up owing tax. 

With just your W-2's entered, you were eligible for a refund, but once you included your pension income, your tax went up.   Look at your Form 1040 total income amount and compare it to the tax calculated and the tax you paid to see this. 

You may want to increase the Federal Tax withheld on your pension, if this applies and you expect it to continue.  This will cover any shortage in Federal Tax from your part-time jobs. 

Or, you could file a W-4 at your part-time jobs requesting that tax be withheld.

Click this link for more discussion on Tax and Part-Time Jobs. 

[VolvoGirl]

Do you also get Social Security?

When you enter one taxable transaction, you can't just watch the monitor.  You increased your overall adjusted gross income and with that come many other changes in your return, not just the incremental tax on the one transaction.

Like for example it increased your AGI and that would decrease some deductions if you itemized on Schedule A.  And by increasing your AGI it might reduce some credits you were getting like EIC.  And can make more of any Social Security taxable.