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1 reply

LenaH
March 18, 2021

It depends. There are a lot of factors that could effect your tax amount due from year to year. Since we cannot see your return, it would be best for you to compare it with a previous year and determine what could have affected your tax due. 

 

Some of the most common reasons to owe state tax are:

  • Less state income tax was taken out of your earnings
  • You were in a higher tax bracket due to earning more money
  • You took on an additional job
  • You sold investments
  • You had a distribution from a 401k that was not related to Covid-19
  • You had a change in filing status
  • You got unemployment and not enough state taxes were taken out

Also, if you are in NJ, you could have possibly been subject to the healthcare penalty. If you had insurance, make sure you indicate that as you are going through your state return. 

 

 

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