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I always used an accountant until he got sick and stopped doing returns. I have used Turbo Tax the past few years. Married with 2 kids, homeowner, nothing crazy. No investments. Both of us work. Last year we got about $4K federal returned. This year, we owe $4500K! That is about a $9K difference than last year. Nothing has really changed. She made about $20K more but her taxes withheld seem to be enough. Were there any major changes in the tax code that would cause this? I cant figure this one out. Is there a formula that shows how much should be withheld for fed, state, medicare and SSI?
I always used an accountant until he got sick and stopped doing returns. I have used Turbo Tax the past few years. Married with 2 kids, homeowner, nothing crazy. No investments. Both of us work. Last year we got about $4K federal returned. This year, we owe $4500K! That is about a $9K difference than last year. Nothing has really changed. She made about $20K more but her taxes withheld seem to be enough. Were there any major changes in the tax code that would cause this? I cant figure this one out. Is there a formula that shows how much should be withheld for fed, state, medicare and SSI?
Did you compare it to your 2018 return to see where the differences are?
Yes. Personal exemptions no longer exist, larger standard deduction but then a lot of people with mortgages itemized rather than take standard deduction so they just lost personal exemptions. The SALT limits.
All depends. Came out about the same for me. Single, no kids, no mortgage. But then I'm more lower to normal middle class and no mortgage than upper middle class. The SALT doesn't hit me.
If your income was roughly the same chances are your withholding was less. That would be the most likely cause. If you itemized in the past and has a lot of state and local taxes that could have a negative impact as well
Yes. Personal exemptions no longer exist, larger standard deduction but then a lot of people with mortgages itemized rather than take standard deduction so they just lost personal exemptions. The SALT limits.
All depends. Came out about the same for me. Single, no kids, no mortgage. But then I'm more lower to normal middle class and no mortgage than upper middle class. The SALT doesn't hit me.
Those changes were effective in 2018 too so that shouldn't be the cause. It should be easy to compare the two years and see where the differences are. Something major had to have changed in order for there to be a $9000 swing.
I always used an accountant until he got sick and stopped doing returns. I have used Turbo Tax the past few years. Married with 2 kids, homeowner, nothing crazy. No investments. Both of us work. Last year we got about $4K federal returned. This year, we owe $4500K! That is about a $9K difference than last year. Nothing has really changed. She made about $20K more but her taxes withheld seem to be enough. Were there any major changes in the tax code that would cause this? I cant figure this one out. Is there a formula that shows how much should be withheld for fed, state, medicare and SSI?
The easiest way to do the return each year is to set up a worksheet with each row for the 1040 fields and one column each for the final 2018 data and the estimated 2019 data. You start with the row for wages and salaries. You list the sources of information under the heading for wages and fill in both years' data. You keep going through the return.
Did you itemize both years? Or take standard deduction both years? That extra 20000 might hav caused you to switch methods. Lots of people are seeing higher taxes despite the temporary “tax break”. But don’t worry in six years it disappears for individuals/families anyway.
:Last year was the first year that we took the standard deduction because it was higher than the itemized. Kids are 11 and 9, so nothing different. When I compare last year to this year, I see about a #10000 difference in Other taxes (higher this year). When I click Other taxes, It goes to Payments with Extension. I have no idea what this is or why it is coming up. We never applied for an extension. When I click the first question, Did you make a payment with your 2019 or 2018 extension of time to file your claim? When I answer NO, nothing changes, I have no idea what this is, how it got here or how to make it go away.
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