Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
JEngler
New Member

Why do we owe more taxes?

In October 2019 I started a new job and used the new W2 format for the first time.  My husband and I file jointly and 2019 taxes went fine. However for 2020 we ended up owing several thousand dollars.  We did not have a significant bump up in salaries that year (overall just several thousand dollars between the both of us) and had no other significant changes to report.  My husband has been at the same job for several years and never submitted a new W2 when they were introduced.  Could this be the reason we ended up owing so much?

 

Recently, I ran our current numbers through the IRS calculator and it looks like we may end up owing a bunch again this year.  Is there something that we are missing as to why the right amount of taxes are not being taken out?  Is there something to the new W2 format that causes this?  Never had this problem ever before.  Thank you in advance for any help!

3 Replies
AdamNe
Employee Tax Expert

Why do we owe more taxes?

Hello, @JEngler !

 

Yes, it could be that your husband's W-4 withholding was not updated. 

 

Your best way forward is to use our withholding calculator which will tell you exactly how to fill out the W-4's for each of your jobs. Have your husband update his withholding, and you can submit a new one as well if you need to. 

 

If it looks like you have not had enough withholding from the beginning of the year until now, you might consider adding some extra withholding for the next few months to try to bridge the gap. You can submit a new W-4 after the first of the year to remove the extra withholding. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
candaceat
Employee Tax Expert

Why do we owe more taxes?

Hello,

 

Looks like Adamne beat me to responding! But this answer might help you as well.

 

Are you perhaps referring to a W-4? A W-2 is the income statement an employee receives from an employer but a W-4 is the form the employee fills out to indicate how much they want withheld. Adjusting your  withholding on your W-4 is a great way to avoid paying taxes at the end of the year. As far as why you owed last year and might owe this year I can't really say without looking at the return. But you can always opt to have an TurboTax Expert view your return and explain why you had a tax due. 

 

In the meantime you can also review this resource that explains common reasons why a taxpayer might have a lower refund or a tax due: https://ttlc.intuit.com/community/refunds/help/why-did-my-refund-go-down-compared-to-last-year-s/00/...

 

I hope this helps. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
rschule1
Employee Tax Expert

Why do we owe more taxes?

Sorry to hear the bad news. Re: year over year comparison. If income has not significantly changed then a solution probably lies within taxes withheld.  Sometimes it just happens due to changes in withholding tables, so it can sneak up on you. Please compare withholding to a prior year. Another possible answer might be a loss of child tax credits which in prior years happened when a child turned 17.  For this year, loss of child tax credit occurs when a child turns 18.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v