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Why do I owe federal taxes? I have a combined income of 3K more than last year, yet now owe 8K in taxes. I have received a refund for the last 18 years until now.

My wife and I are teachers. We earned a total of 3K more than we did last year. With mostly the same property taxes and withholdings, we now owe the gove 8K, when last year we received 700 dollar refund.

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6 Replies

Why do I owe federal taxes? I have a combined income of 3K more than last year, yet now owe 8K in taxes. I have received a refund for the last 18 years until now.

you can't deduct the same property taxes now. So how much property tax did you pay.?
You probably made an entry error somewhere.

Why do I owe federal taxes? I have a combined income of 3K more than last year, yet now owe 8K in taxes. I have received a refund for the last 18 years until now.

I have paid almost 5K in property taxes, have this message: You've maxed out the federal $10,000 deduction for itemized state and local taxes.  Where would an entry error account for an 8K swing?

Why do I owe federal taxes? I have a combined income of 3K more than last year, yet now owe 8K in taxes. I have received a refund for the last 18 years until now.

incorrect figure for tax withheld would do it.
jtax
Level 10

Why do I owe federal taxes? I have a combined income of 3K more than last year, yet now owe 8K in taxes. I have received a refund for the last 18 years until now.

how much state income tax did you pay in 2018? The $10k limitation is for state and local taxes. It is not just property tax but also includes income tax.
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Why do I owe federal taxes? I have a combined income of 3K more than last year, yet now owe 8K in taxes. I have received a refund for the last 18 years until now.

We received a state refund, less than the previous 17 years, but got 571 back. We paid total in state taxes 7K.

Why do I owe federal taxes? I have a combined income of 3K more than last year, yet now owe 8K in taxes. I have received a refund for the last 18 years until now.

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.

You will need it if you are audited by the IRS, or to amend because a TurboTax update changes your return.

OR to avoid entry errors.
some tax filers are hit hard by the new tax law, but 8K sounds like a lot.

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