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A lot of different factors, but probably employer not taking enough out. I always claim 0 and somehow I have to pay back $2k every year, making $90k. Next year, just adjust an extra $100/month out of your check.
Gonna need clarification here:
Are you asking why you have to now pay taxes since you make more?
Or are you asking why you didn't pay taxes (aka refund) when you made less?
Gotta say that if you’re making that much money and don’t understand taxes, hire a CPA to help you.
Higher tax bracket
Sounds like your tax bracket could have changed as well. There are about a million reasons why this could be the case.
Can you give more information about your income for the year.
Did you get the same pay throughout 2023 or did you have any raises, bonuses, change company, or any other income.
Wild guess, I’d say you had sizable bonuses that was only taxed at 22%, but you’re in 24% bracket.
Otherwise perhaps there was an error with who payroll processed your withholdings.
From what I understand 2 is the most common for single person
You either pay more out of every check or owe at the end of the year. Up to you
You need to contact HR and request they withhold an additional $40 per pay check — this is done on your W4. On the form, they ask if you’d like to withhold an additional amount. You need to fill in at least $40-$50 so you don’t owe again next year. You can request they withhold an additional $100 per paycheck if you would like a refund.
Rather hold onto the money and put it in a hysa or tbills
This is likely because your salary jumped drastically. I doubled my income one year and owed a bunch of money because my withholdings at my first role were significantly less than my second.
At the end of the day, Uncle Sam always gets what’s owed. If you get more money back, that means you get him a free loan of your money at 0% interest. If you owe money, that means he gave YOU a free advance and now you need to pay back the difference. As long as you are responsible with your money, you should have the funds to do so. What you should go for is to owe a little bit or get almost to no tax return money back. If you’re getting a massive return, something is wrong.
Do you have an investment income? Any credit or deductions that no logern apply? E.g are your kids older than 17 now, did you own a home but now you rent?
In my experience if you jump a tax bracket you make less in your return. Eventually paying out. 🤷♀️ Also depends on what you withheld in the past compared to now.
https://turbotax.intuit.com/tax-tools/calculators/tax-bracket/?srqs=null&cid=ppc_gg_nb_stan_all_na_Calculator-CalculatorEstimateBrackets-CalculatorEstimateBrackets-Exact_ty23-bu3-sb160_682717607493_142194610005_kwd-339132207516&srid=CjwKCAiA5L2tBhBTEiwAdSxJX4qADfHsyqfck3c-dKfVRGrCTL7AI45iUbnzKNhesvLaASwIj_BQFxoC9GYQAvD_BwE&targetid=kwd-339132207516&skw=2023%20tax%20brackets&adid=682717607493&ven=gg&gad_source=1&gbraid=0AAAAADkGAVlG1c4vrKsG_30r_EEHzBoHq&acs_info=ZmluYWxfdXJsOiAiaHR0cHM6Ly90dXJib3RheC5pbnR1aXQuY29tL3RheC10b29scy9jYWxjdWxhdG9ycy90YXgtYnJhY2tldC8iCg&gclid=CjwKCAiA5L2tBhBTEiwAdSxJX4qADfHsyqfck3c-dKfVRGrCTL7AI45iUbnzKNhesvLaASwIj_BQFxoC9GYQAvD_BwE&gclsrc=aw.ds
https://taxfoundation.org/data/all/federal/2023-tax-brackets/
They changed withholding a few years back to make people feel better about their checks. Now lots of people are paying in.
My wife's job withheld so little that, even if she was our only income for our family of 6, we'd still owe.