After applying your deductions, your taxable income was $56,598. However, you did not owe any tax this year. We should owe 12% of our taxable income exceeding $23,200?
After applying your deductions, your taxable income was $56,598. However, you did not owe any tax this year. We should owe 12% of our taxable income exceeding $23,200?
The standard deduction for a couple that is married filing jointly is $29,200. If you both are over 65, then you would add $3,100 to that for your standard deduction. This means if you are both under 65, your taxable income would be $27,398.
Not owing tax means that you have paid in enough to cover your tax liability. Look at line 16 of your tax return, this will tell you what your tax liability is. Compare that to line 25. If these numbers are the same, or line 25 is greater than line 16 then you would not owe any taxes or you could be getting a refund.
Do you have children? Did you have any other credits or deductions? Why do you believe you should owe taxes? Is your situation the same or different than last year?
You can look at your form 1040 from last year and compare it line by line to see why there is a difference.
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