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New Member
posted Jun 29, 2020 8:40:55 PM

Why is my tax higher in 2019 than in 2018? when taxable income was $3000 higher in 2018?

Taxable Income 2018  $63,467
Tax  2018                          $5610
Taxable Income 2019   $60,306
Tax 2019                           $ 6209

0 2 317
2 Replies
Level 15
Jun 29, 2020 9:06:06 PM

Is that the tax on line 12 or the tax due to pay?  I don't see that amount on the tax table  https://www.irs.gov/pub/irs-pdf/i1040tt.pdf 

 

Some reasons could be you had more qualified capital gains in 2018.  Or in 2019 you have a penalty for something like the 10% Early Withdrawal Penalty on a IRA or 401K distribution.  You need to post the line numbers.

Not applicable
Jun 30, 2020 1:07:44 AM

there can be many reasons. we can't see your return.  for example: 1) you have dividend income and a larger portion in 2019 is non-qualified.   2) you have schedule C or self-employment income from a partnership. since that will vary the SE tax will vary. 3) you had more tax credits on 2018 return than on your 2019 return.