Fed taxes sticker shock

[Anonymous]

My refund is basically the same from year to year (its a small amount). I haven't changed my withholding. I like to get a small refund rather than owe. Not sure why people are getting dramatic changes in the amount owed?

[Anonymous]

So...a LOT of people have told me they owe big time this year so I dreaded doing my taxes because I owed *last* year for the first time in awhile. But somehow I ended up getting both a state and federal refund this year. I always use TurboTax and you can see the year over year comparison between my itemized deductions and there's very little difference. None of it makes sense to me.

[Anonymous]

Anonymous wrote:So...a LOT of people have told me they owe big time this year so I dreaded doing my taxes because I owed *last* year for the first time in awhile. But somehow I ended up getting both a state and federal refund this year. I always use TurboTax and you can see the year over year comparison between my itemized deductions and there's very little difference. None of it makes sense to me.

Same. I really can't figure out why it changes so much. DH and I make almost the same amount (130k) and we used to owe 5k yearly. Now I just have an extra $250 a pay check withheld and we seem to be doing okay now. I really hate our tax system.

[Anonymous]

Ugh yes we got $4800 back last year and owed $2500 this year. Although we did go from HHI $130k to $220k

[Anonymous]

Anonymous wrote:Ugh yes we got $4800 back last year and owed $2500 this year. Although we did go from HHI $130k to $220k

Double salary and owe taxes, poor you. Lol.

[Anonymous]

I think it has to do with the Child tax credit change. We owe 4K more than last year but also have increased income.

[Anonymous]

Anonymous wrote:I think it has to do with the Child tax credit change. We owe 4K more than last year but also have increased income.

+1 not sure if it was covered earlier on the thread but the child tax credit was huge temporarily during covid as one of the stimulus efforts but as planned it isn’t as high this year so I think that is likely the difference some folks are seeing

[Anonymous]

We owed 65k to federal. But, the state of Maryland owed us nearly 15k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We always owe. Another 10k this year. Why do I bother working?!?!

Owing $10k means that you borrowed that much from the government over the course of the past year. People not understanding the basics of taxes as an adult baffles me.

I'd argue that the person enjoyed the benefits of the $10k and had the opportunity to earn interest on it before handing it over to uncle Sam. They didn't "borrow" it from the government since it isn't technically due until tax day. People not understanding the basics of taxes as an adult baffles me!

Not true at all, as anyone who pays estimated taxes will tell you., If you pay all the taxes you owe on April 15, you will incur a serious penalty.

Agreed. I mean there are safe harbor provisions, but the interest and penalties can add up quick.

[Anonymous]

Anonymous wrote:We owed 65k to federal. But, the state of Maryland owed us nearly 15k.

Yeah we had a similar situation with Virginia.

[Anonymous]

Anonymous wrote:I was the closest to $0 I've ever been.

I received a $10 fed refund and came in at $0 for VA state taxes.

That is a fine art lol how did you do it?

[Anonymous]

Anonymous wrote:We owed 65k to federal. But, the state of Maryland owed us nearly 15k.

What is your income?

[Anonymous]

In 2021 we were receiving monthly covid childcare payments each month. The amounts were based on our 2020 income.

In 2020, our taxable income was significantly higher than 2021 due to a couple of factors. So in 2021 we got a nice big refund - some of that was covid childcare payments not paid throughout the year (because they were actually based on 2021 income)

In 2022 we owed the feds about $4000 because our income went up again. I’m 1099 and make quarterly estimated payments, and I guess I underestimated in 2022.

[Anonymous]

I cashed in 30-year old EE bonds, of which $12,000 was interest, so I owed a bit more in taxes than usual. Thankfully, no state taxes on EE-bonds. I should have paid taxes all along, rather than all at once, but live and learn.

[Anonymous]

Anonymous wrote:I cashed in 30-year old EE bonds, of which $12,000 was interest, so I owed a bit more in taxes than usual. Thankfully, no state taxes on EE-bonds. I should have paid taxes all along, rather than all at once, but live and learn.

I did this too but made an estimated payment immediately so no shocks. There is no benefit from paying the taxes early.