Why do I owe more this year?

Forum|Forum|11 months ago
April 14, 2025
1 reply
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I’m doing my taxes for the first time and I was proud of myself until I saw I owe almost $1k more than last year. The big difference is I started doing freelance work and started earning extra income, but according to TurboTax, my business income is only $370 and from what I read, I pay self-employment tax if I have an income greater than $400, so I don’t understand why I owe so much more. I have treasury bills and a high-yield savings account and I’ve generated about 10 K in interest, but I haven’t sold any of my stocks. Would the larger amount of interest that I accrued this year (compared to last year) be the reason why I owe $1k more?

Best answer by Mike9241

the usual reasons are more income or less withholding. Sometimes both. we can't see your returns so compare 2023 to 2024 line by line to see where the differences lie.

Mike9241Answer

the usual reasons are more income or less withholding. Sometimes both. we can't see your returns so compare 2023 to 2024 line by line to see where the differences lie.