Question

Federal Taxes Seem Too High

Forum|Forum|2 years ago
April 15, 2024
3 replies
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Hello, I believe the federal taxes I owe are too high and I'd like help understanding why they are this value or how to fix this.

My W2 income is $70,353. I only have a W2, HSA, and retirement account to report on taxes.

I took the standard deduction of $13,850. This should make my taxable income $56,503. Using the 2023 tax brackets I calculate that my federal taxes should be around $6,430. TurboTax and FreeTaxUSA both say my Federal Taxes owed are $7,743. Why are my taxes owed to much higher than my taxable income would suggest?

Thank you.

Not A Product Question

baldietax

7743 seems correct tho, give or take $5, assuming single filer

10% on first 11,000 = 1100

12% on 33725 (44725-11000) = 4047

22% on 11778 (56503-44725) = 2591

Total = 7738

DawnC

Employee

Maybe you are not including all of your retirement income. Look at your Form 1040, line 15 - that is your taxable income. Then look at line 16 to see your ordinary income tax. If there is no form marked on line 16, your tax was figured from the tax table.

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T

tslan

I agree with the first post. However, when you say your taxable income is 56,503 that is w2 income minus standard deduction. You also say that you have an HSA, did you contribute to it in 2023,? If so, did you enter that in turbotax. Same for IRA, was that contributed to during the year? was the contribution shown on the w2 or did you contribute to an IRA outside your workplace that would be tax deductible and sb entered elsewhere in turbotax?