Zero exemptions and this year we owe $7500 - what happened?

[Gridge1]

I've always used turbotax and never had a problem. We don't claim any exemptions on our W-4; never have. We always expected that we'd have sufficient (or mostly sufficient) monies withheld from our paychecks since we have 0 exemptions. 

Our taxes are VERY simple. 2 incomes; married filing jointly; Our kiddos are 13 and 17; NO changes over the past few years to the way we file. The last few years we've had the standard deduction and we've ALWAYS received a refund (fed and state typically). If ever we owed, it might have been $100. That's it.

This year we actually earned $100K+ LESS (yep) and owe $7500, plus an underpayment penalty to the fed. $600 refund from VA. How is this possible?? I've done my taxes 2 times now thinking that somewhere there must be an error, but I'm ending up with the same result. Appreciate any thoughts/recommendations. Do I really need to make ADDITIONAL payments? That seems excessive, but I definitely don't want to owe like this again (if it is right).

Thanks in advance!

[DoninGA]

You need to look at your federal tax return, Form 1040.  If using the TurboTax desktop CD/Download editions, click on Forms.  When in Forms mode click on the Form 1040 on the left side of the screen to open the form.

On Line 1a, is the amount the same as the amount of all your W-2's box 1?

On Line 15 is your taxable income.  Is this similar to your 2021 tax return?

On Line 25a is the amount of your federal taxes withheld from your W-2's box 2.  Is this amount correct?

Look at the other amounts shown on the tax return to see if you have any type of discrepancy.

[Gridge1]

Hi DoninGA

#1 and #3 are correct. Our taxable income was higher last year (as were our withholdings) because my husband is in sales and made significantly more last year.

Its just very odd and doesn't make a whole lot of sense why there's such a big difference. I'm just in a quandry for next year because now I'm thinking I should have extra money withheld now so I don't wind up in this spot again. I would never have guess this based on our track record.

thanks for the help!