Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I will do it again. My accountant told me (when I was using him) that 75K was a new tax bracket. We were already over that last year. I don't think we are in a different tax bracket than last year. Is there a hard number of what the bracket amounts are? And yes, the new tax laws began last year so we took the hit already since we live in wonderful NY and our property taxes are higher than the new limit. So, not much has changed from last year to this year, yet there is a $7K differnce this year. Hopefully, the new return will show the error.
This is one reason that I often will first do my taxes using the IRS forms and publications, the slower way...and later use TT or another program to do it, allowing me to double check my numbers, identify any discrepancies, and e-file.
The other benefit of doing it with the IRS forms and pubs, is that you gain a better understanding of the mechanics of the process, in my opinion. If you suddenly gain or lose something, you'll know why. And...well...I'm usually using best estimates before I even get my tax docs from my work, bank, and other entities, to do that preliminary "on paper" preparation. But my preliminary run is usually within a few dollars of the final return that I file. I can get it very close, sometimes exact.
I would really, really like to help you, OP. Unfortunately, just like my ability to tech-support issues with computers, I can do it but only if it's in front of me and I can inspect, investigate and fiddle with it.
If you've identified that "other" tax item as something that is there this year, and wasn't last year, then you need to figure out if a.) It was supposed to be included in your last year's return but it was not (maybe something you erroneously forgot to enter, since I think you said you did it yourself with TT last year, too?) or b.) It is something that you had right last year but you messed up this year. Turbo Tax doesn't tend to populate those fields out of thin air. You fed it a number somewhere that caused this difference.
But yeah, your tax liability should be quite a bit higher with a $50K+ increase in earnings. I can't say if your withholdings kept pace enough that it should not make a drastic difference or not. You've got those numbers. Compare them. Did you remember any/all credits you might have had in the past like for child care and such? What was the overall difference in your total itemized deductions last time vs. your standard now? You don't need to answer these questions here, but gather that information for yourself. Do you use MS Excel? That's the best way I know of to compare things side by side.
OK. I did it again. After only entering my wife's income and withholding, we were up $7K. After I entered my info, We went down to owing 4K. This is where I am confused. I did not change any withholding amounts in the past 10 years and I always overpaid by a mile. I enter my $13K property taxes, a $4K child credit and the amount stays the same.
Total Deductions - (2018) $24096 (2019) $24440
Total Credits (2018) $15.369 (2019) $23,039.
It says the Standard Deduction is right for me. This deduction of $24440 will save me the most money. Click Next. I still owe $4331. So, basically, since I added both of our w2 info, nothing has changed after all of standard deduction, child credit, etc.
In the end, it says Fed Taxes owed is $23370. Fed Taxes Paid - $19039.
Last year, the fed taxes owed was $12,693 and paid was $11,369
Feeling guilty because my income put us over the edge to owe more. I decided to do a new return, only this time, I entered my info first this time. Hey, we are up over $3K. Then I add hers and we owe $4K again. So, I dont think the problem is either of us individually, but the total household income has to pay far more federal taxes than we are. It looks like the extra $50K income resulted in doubling the fed tax owed from last year. Does that mean we went to another tax bracket?
OK. I did it again. After only entering my wife's income and withholding, we were up $7K. After I entered my info, We went down to owing 4K. This is where I am confused. I did not change any withholding amounts in the past 10 years and I always overpaid by a mile. I enter my $13K property taxes, a $4K child credit and the amount stays the same.
Total Deductions - (2018) $24096 (2019) $24440
Total Credits (2018) $15.369 (2019) $23,039.
It says the Standard Deduction is right for me. This deduction of $24440 will save me the most money. Click Next. I still owe $4331. So, basically, since I added both of our w2 info, nothing has changed after all of standard deduction, child credit, etc.
In the end, it says Fed Taxes owed is $23370. Fed Taxes Paid - $19039.
Last year, the fed taxes owed was $12,693 and paid was $11,369
Feeling guilty because my income put us over the edge to owe more. I decided to do a new return, only this time, I entered my info first this time. Hey, we are up over $3K. Then I add hers and we owe $4K again. So, I dont think the problem is either of us individually, but the total household income has to pay far more federal taxes than we are. It looks like the extra $50K income resulted in doubling the fed tax owed from last year. Does that mean we went to another tax bracket?
If you made 59k more in 2019 vs 2018 you are looking at a tax difference of 10,677 or 18% of that 59k in additional income. I’m not seeing what the issue is. If you make more money you have to pay more taxes generally speaking. Also I’m not sure why you’d feel bad because of this situation I’d take 59k more in income anytime if all it cost me was an additional 10-11k in taxes
If you made 59k more in 2019 vs 2018 you are looking at a tax difference of 10,677 or 18% of that 59k in additional income. I’m not seeing what the issue is. If you make more money you have to pay more taxes generally speaking. Also I’m not sure why you’d feel bad because of this situation I’d take 59k more in income anytime if all it cost me was an additional 10-11k in taxes
Yeeeaahh...but it sure would suck if you weren't expecting to get hit with a bill like that.
Yeeeaahh...but it sure would suck if you weren't expecting to get hit with a bill like that.
I think the end resulting cause will be the belief that the w4 withholding amount would keep you from owing or owing a fair amount but that couldn’t be further from the truth
OK. I did it again. After only entering my wife's income and withholding, we were up $7K. After I entered my info, We went down to owing 4K. This is where I am confused. I did not change any withholding amounts in the past 10 years and I always overpaid by a mile. I enter my $13K property taxes, a $4K child credit and the amount stays the same.
Total Deductions - (2018) $24096 (2019) $24440
Total Credits (2018) $15.369 (2019) $23,039.
It says the Standard Deduction is right for me. This deduction of $24440 will save me the most money. Click Next. I still owe $4331. So, basically, since I added both of our w2 info, nothing has changed after all of standard deduction, child credit, etc.
In the end, it says Fed Taxes owed is $23370. Fed Taxes Paid - $19039. Last year, the fed taxes owed was $12,693 and paid was $11,369
Feeling guilty because my income put us over the edge to owe more. I decided to do a new return, only this time, I entered my info first this time. Hey, we are up over $3K. Then I add hers and we owe $4K again. So, I dont think the problem is either of us individually, but the total household income has to pay far more federal taxes than we are. It looks like the extra $50K income resulted in doubling the fed tax owed from last year. Does that mean we went to another tax bracket?
Your original post said last year you got back about $4k but these numbers show you owing $1,300. So going from owing $1,300 to owing $4,300 when you made $59k more is hardly a stretch.
Might have been helpful if you had a grasp on what the actual numbers were when you originally posted, makes it easier for others to point you in the right direction when they have the right information.
You don't understand how tax brackets work. Regardless of you going up into a higher bracket, it is ALWAYS better to make more money. You only pay the highest bracket on the income over a certain amount. It doesn't mean you pay that on the entire amount.
You made $59k and you don't understand how you owe more?
59k is a typo. My wife made $30k more and I made about $20k more. I made a mistake. We got a $1500 refund last year. (It was $4500 2 years ago). I believe we both paid more taxes this year than last year. If no one changed their withholding or exceptions last year wouldn’t tHr taxes withheld raise in proportion with th pe salary, thereby avoiding this issue.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
