Very Large increase in 2018 Taxes

[NCperson]

SALT has nothing to do with AOC.

I would suggest CLOSELY reading the IRS link below on who is eligible and then ensure you have answered all the TT questions correctly as well as input FORM 1098-T correctly. 

https://www.irs.gov/credits-deductions/individuals/aotc

for the 'other dependents', again, please read the link below and ensure you have answered all the questions in TT correctly 

https://www.irs.gov/credits-deductions/child-tax-credit-and-credit-for-other-dependents-at-a-glance

in this 2nd link there is an 'interactive tax assistant' hyperlink where the IRS will take you through a series of questions to determine which child / other dependent tax credit you are eligible for.  the TT questions follow these same questions, but it make help you determine whether you are eligible or not and why not.  If after answering the questions at the IRS website determines you should get the credit but TT says you shouldn't, then there is a high probability you've made a mistake in answering the questions in TT

Good luck!  

[bzybee08]

I am shocked to discover something similar.. went from owing $800 last year to owing nearly 7k this year.  Twitter is exploding with similar stories.   Oh, and we claim 0 deductions and I paid extra taxes via payroll last year.

[bzybee08]

Dup

[pdonde2]

I have observed the same thing.  I guess it's because the RE taxes and state taxes and such are limited and you must then only use the increased standard deductions, which don't make up for what you have lost in new tax code. I expected to pay not more than last year for the same income but I am paying more.   

[pacfun1]

Well, I can't get Turbo tax to give me my self employed health insurance deduction (I am self-employed), so I'm struggling to understand the veracity of the rest of my return.

[NCperson]

see this link: 

https://turbotax.intuit.com/tax-tips/home-ownership/deducting-health-insurance-premiums-if-youre-sel...

note specifically that 

"If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents. This health insurance write-off is entered on page 1 of Form 1040, which means you benefit whether or not you itemize your deductions.

follow the step x step instructions for self employed.  While all the other business expenses will appear on Schedule C, the self employed medical will be an adjustment on Schedule 1 (line 29).  

Is it possible that in fact TT did give you the deduction, but it's now where you expected it???? 🙂 

[Wagnerprime]

We had a 600% increase in taxes due.

We had a 40k increase in 2017-2018 salary (which is actually a 50k decrease compared to 2015) and having received refunds for the past 10 years...

We increased our 401k contributions, increased our charitable donations and had an increase  normal deductions (interest and state/local taxes) - but our deduction claim dropped by close to 10k

Went from a 1k refund (2017) and a 2k refund (2016) to a 6k payment (2018)....

I knew that the Cheeto's "tax break" was an illusion, but this seems impossible.

[bzybee08]

I am beginning to wonder if this is an Intuit issue that will force everyone to pay for their CPA service to fix it..  because, I am about to upgrade to it myself since, well, 5k extra in taxes.

[yuukis1]

Just did my 2018 taxes.  Made a little more this year than last and deductions were much less so I used the standard deduction this year which was almost the same as the deductions from last year.  The amount of tax I paid doubled this year. Fortunately, my with holding covered it but no refund which I have been getting for years. Great tax package. Obviously, I am just not rich enough to get the true benefit from the new tax laws. 

[Imgontaxu]

I'm in the same boat. my gross adjusted is 18000 this year and I owe! I do not understand. Made 5000 less this year and instead of getting back $2000 I owe $77 WTF?

[hildee65]

Same experience here.  Very little change in income from last year.  Married filing joint with no kids and have been claiming married and 0 all year.  Went from a $3200 refund last year to owing $2300 this year.  Difference I see is loss of business expense deductions and cap on mortgage interest & taxes.  All of our income was W2 reported.  Had already figured we would probably just breakeven but shocked we actually owe this much additional.

[prtaylor56]

Many folks like you are saying they are getting smaller refunds than than last year, but is the amount of taxes owed really larger on the same income as last year, or maybe were taxes withheld less than last year?  

[Korab]

My effective tax rate DOUBLED from last year.

No significant changes to my situation, same pretty much everything, except the tax rate.

I spent the entire day Saturday in shock trying to figure out what I entered wrong.  But no, it's not wrong.  It's the new "tax cuts".

Did I mention that my tax rate is DOUBLE what it was in 2017?

[hildee65]

Yes my effective tax rate doubled per turbo tax. I believe the change in withholding tables which we did see about $10 a pay period increase in our take home coupled with the loss of all our deductions caused the issue.

[Clark]

I to have had a large increase.  From owing Fed's $64 to $1K and state from a refund to $1300.  I am completely retired this year drawing SS,IRA,s and a fixed pension plus a p.t. job that stopped during 2018.  I have found that little state tax was taken and will correct that but I can not figure why the increased Fed tax when deductions where the same on all income.  Are IRA'S taxed differently?  That is the change from last years taxes.