What am I missing??

Forum|Forum|6 years ago
March 6, 2020
1 reply
9 views

With a taxable income increase of $2645 from over last year, is it logical that my taxes due on that amount could be $1070? I'm in the 12% tax bracket. What am I missing?

ReginaM

Level 12

Take a minute and review the data that you input into TurboTax to make sure it is right. If it is,

There could be a couple of reasons that you are getting back less this year then last year.

Back in 2018, the IRS reduced the amount withheld from employee paychecks so people had more take home money. This was done because the IRS did away with the personal exemption and increased the standard deduction. The net affect of this has lowered the amount of refunds realized by the taxpayer.

You may want to verify that you entered everything into TurboTax correctly by following these steps:

Select Tax Tools on the left hand side of your screen,
Select Tools,
Select View Tax Summary,
Select Preview my 1040 on the left hand side of your screen.

Also, you might want to file a new W-4 with your employer to make sure you are having enough withheld to pay your taxes. Here is a link to the IRS Withholding Estimator to assist you determine how much you should have withheld by your employer.

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theabeAuthor

Level 2

Thank you for your timely reply. A few more details from me would have been helpful, earlier. Sorry.

Please consider that I am in my 70's, retired for more that a decade and I haven't had a 1040 for many, many years.

I followed your suggestion and verified my data entry in the "tools / tax summary" as well as an over the shoulder verification from a family member.

I'm in the 12% tax bracket, and earned $2645 more in taxable income in 2019 than I did in 2018, yet turbo tax says I owe $1070 in taxes [40% of my taxable income, which was $38,348].

Care to offer any additional feedback? If not, is there someone you might refer me to?