Different levels of income are taxed at different rates. Tax brackets are set up to tax the first portion of your income at 10%. After a certain level, it increases to 12%, then 22% and so on. The highest rate is 37%. The amount of income taxed at the different rates depends on your filing status. Your tax return is a reconciliation of all sources of income with the calculated tax liability against payments already made via withholding. See the link below:
We cannot see your return. However, one way to feel confident is to compare your previous tax return with the current year. Some important lines to consider are total income, taxable income, tax due, total payments, and refund or balance due. This will give you an idea of whether or not you may have left out anything before you file or if you need to adjust your withholding in the future.
If you have any income from self-employment, you may also be assessed the self-employment tax. Also, take into consideration any job changes, life changes (marriage, new home, dependents, etc.) that may affect your return. Review the Deductions & Credits section of TurboTax to make sure you have taken advantage of all potential tax breaks.
How to Estimate Federal Withholding
Thank you. This is what I looked up also and I am under the threshold for 22% and there is one other between that and the one turbo tax is trying to charge me. I feel like because I didn't sign up for the extra service with them this year they are charging me the wrong rate. I will just have to get my taxes done by someone else. I can't go from getting a refund last year, to owing almost 10k.