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June 30, 2020
Question

Why is my tax higher in 2019 than in 2018? when taxable income was $3000 higher in 2018?

  • June 30, 2020
  • 2 replies
  • 0 views
Taxable Income 2018  $63,467
Tax  2018                          $5610
Taxable Income 2019   $60,306
Tax 2019                           $ 6209

2 replies

VolvoGirl
Employee
June 30, 2020

Is that the tax on line 12 or the tax due to pay?  I don't see that amount on the tax table  https://www.irs.gov/pub/irs-pdf/i1040tt.pdf 

 

Some reasons could be you had more qualified capital gains in 2018.  Or in 2019 you have a penalty for something like the 10% Early Withdrawal Penalty on a IRA or 401K distribution.  You need to post the line numbers.

June 30, 2020

there can be many reasons. we can't see your return.  for example: 1) you have dividend income and a larger portion in 2019 is non-qualified.   2) you have schedule C or self-employment income from a partnership. since that will vary the SE tax will vary. 3) you had more tax credits on 2018 return than on your 2019 return.