Why is my taxable income so much higher than last year?

[jamirfells]

last year my kid made $13,500 this year he made $24650? Why is the taxable income so much higher?

[xmasbaby0]

More income = more tax.

If he is single his 2022 standard deduction is $12,950.   Last year he barely made above the 2021 standard deduction of $12,550----so for 2021 he had less taxable income.  For 2022 he pays tax on anything above $12,950.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[EE10PIE]

Very likely that your kid paid little taxes in 2021 with a Total Income of $13,500. The reason is the standard deduction for 2021 was $12,550. So, $13,500 - $12,550 = $950 taxable income: I didn't look up the 2021 tax table, but on the order of $100 taxes owed.

For 2022, the standard deduction (for single filers) has increased to $12,950.

$24,650 - $12,950 = $11,700 Taxable Income. Per the 2022 tax table for single filers, $11,700 in Taxable Income has a tax of $1,202, not accounting for anything else in his tax return I'm not privy too.

Hope this helps. Make sure your kid has selected 1 or 0 for deductions in his employer's W4 form, which will make sure he has adequate or plenty of tax withheld (and you won't have to write a check to cover your kid on tax day!)