Our income went up this year and federal credits decreased, but we didn't change tax brackets, so I expected our taxes owed to go up somewhat. I didn't expect them to more than double! Based on the numbers below, is there a simple explanation? Or could there be a mistake somewhere?
2023
Total Income: $132,578
Federal Deductions: $28,300
Taxable Income: $104,278
Federal Credits: $4500
Federal Taxes Owed: $9042
2024
Total Income: $172,395
Federal Deductions: $31,468
Taxable Income: $140,927
Federal Credits: $2527
Federal Taxes Owed: $18568
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More income = more tax
We cannot see your screen, your return or your account. Have you entered ALL of your 2024 information? All your income, etc.? Many tax documents that you need do not arrive until late January or even February, so maybe you do not have it all there yet.
There are a lot of variables that affect your refund or tax due including how much you earned, how much tax you had withheld, your filing status, the number of dependents you claim, your deductions and credits, etc. You may have lost Earned Income Credit or the Child Tax Credit— did a child turn 17? If you received the EIC last year, remember that changes in the amount you earn have a big effect on the amount of EIC you can get. (Sometimes earning more money means less EIC) Are you 65 or older ? If so, your standard deduction is higher. Everyone has a higher standard deduction now so it is harder to use itemized deductions.
And of course, always check your own data entries, looking for errors such as misplaced decimals or extra zeros.
Print out 2023 and 2024 and compare them side by side to see what is different.
https://turbotax.intuit.com/tax-tips/tax-payments/video-why-would-i-owe-federal-taxes/L3VXudPiN
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