Question

TurboTax reporting a higher federal tax due than it should be

Forum|Forum|4 years ago
January 6, 2022
1 reply
0 views

Hello,

I feel like TurboTax is overestimating my taxes due? My wife and I were married this year and this is our first time filing jointly. She's a stay-at-home mom and I brought in $96000. According to this years brackets, that would make the first $81,051 taxed at 12%, or $9382. The remaining $14,949 would be taxed at 22%, or $3,288 for a total of $12,670, and this is before any deductions (I would be choosing the standard deduction of $25,100). TurboTax is reporting that my federal tax due is $15,978, a difference of over $3,000. Additionally, once you take into consideration the $25,000 deduction, only $71,000 would be taxable, which should turn out to be only $8,121, just over half of what it's estimating. What am I missing here?

TurboTax Self Employed Online

fanfare

Employee

Your own estimate is ball park for a W-2.

If you are a contractor (1099) then you need to look at schedule SE.

Estimating tax without your standard/itemized deduction is wrong.

X

xmasbaby0

Employee

You are posting from online Self-Employed---so it looks like you are forgetting that you need to pay Self-Employment tax for Social Security and Medicare.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**