Question

tax increase higher then income increase

Forum|Forum|3 years ago
April 17, 2023
2 replies
0 views

My taxable income increases by $10,869 from 2021 to 2022. But my taxes increased by $14,608! How is it possible for me to owe more in the tax increase than my income increase???

D

Dreadnought

Check your deductions and credits.

Maybe you forgot something
Maybe your new income means you no longer qualify for something
Maybe you entered some kind of deduction wrong

M

Me Be Max

Could be you had more long term capital gains last year that were taxed at a lower rate. Or, if you pay estimated taxes, enough wasn't paid on time. Or, did you force to use itemzed deductions even though it wasn't better than using standard deduction. Or, if you received 1099-R, check codes that you took early didtributions. If none of these help, go through the dialog screens; most likely there's a typo of deduction code that wasn't entered..

B

BillM223

Since we in the Community cannot see your private tax data, I will advise you to do this:

Set your 2021 and 2022 side by side and compare lines 16 through 33. There should be a noticeable change on one of these lines, out of line with the $10,000 increase. When you find that, chase down the form that it comes from - this is what we would have to do if we were your tax preparer.

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