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March 27, 2021
Question

I'm wondering how I owe in Federal when I had additional money taken out of each check?

  • March 27, 2021
  • 1 reply
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1 reply

LenaH
March 27, 2021

It depends. There are a lot of factors that could effect your tax refund or amount due from year to year. 

 

Some of these reasons are:

  • You were in a higher tax bracket due to earning more money
  • You child turned 17 and no longer eligible for the Child Tax Credit and are now receiving the Credit for Other Dependents
  • You no longer qualified for the Earned Income Credit
  • You paid off your student loan and cannot deduct any student loan interest
  • You are no longer eligible for education credits
  • You took on an additional job
  • You sold investments
  • You had a distribution from a 401k that was not related to Covid-19
  • You had a change in filing status
  • You got unemployment and not enough taxes were taken out

To really understand the exact differences, you would have to do a line by line comparison of your return.  

 

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