{ "media_type": "text", "post_content": "Income tax question: how much additional tax do you owe with your 2020 return? I’ll start. - $6k on a $115k salary. 😬", "post_id": "603263e6676501002fd1a09e", "reply_count": 55, "vote_count": 1, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting" }

Income tax question: how much additional tax do you owe with your 2020 return? I’ll start. - $6k on a $115k salary. 😬

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Overall tax liability is what matters, OP. All this seems to tell me is: -You had a taxable event/additional income that you didn't withhold taxes on. -You didn't withhold enough taxes throughout the year (maybe lower your withholding number on the W-4).

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Thanks C1!

Yes, I owe 3k to IRS and 1k to state. I’ve reconciled manually as well as filling numbers in turbo tax, and they align well. Pretty straightforward tax with w2, and some investment income (nothing complex)

Thanks for sharing!

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Why does everyone in this thread seem to think owing taxes is bad? That means you kept more money during the year that should have gone to the IRS instead of the other way and giving the government an interest-free loan. Agree with the above though, something is off with your withholding. Did you have any investment income during the year? Or did your employer mess up your W-2? Can check your pay stub to see how much was withheld for last year and see if it matches W-2.

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Ehh just pay the tax bill. You could have invested the extra throughout the year and come out ahead with the extra 6k. Either way, if you're making that much, it shouldn't be a big deal. Just check if you're going to get fined by the IRS for not withholding enough for 2021 and make sure the withholding is closer to your estimated tax bill

Are you married?

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Just use run IRS withholding calculator every few months and you should be good!

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Fun fact - tax code is historic and old fashioned. If you file married and don’t update your withholding a properly, it assumes you are a single income household 🙂 I.e. husband working with stay at home wife. Crazy they haven’t updated things more intuitively considering most married couples are dual income.

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How?

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EY3- no, we both only worked in the same state we live in.

My guess is you made a mistake. This happened to me last year and I just re-entered all my info into H&R Block’s site and paid the extra $60 or whatever to have it reviewed once I filled it out. I worked in multiple states and turns out my income was being counted twice.

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I sincerely hope it’s a mistake. I plan to have it reviewed before we file, for sure. But so far, I’m double snd triple checking everything and the information looks correct. ☹️

I owe 9k on 130k salary. Paying taxes on my 401k that I liquidated last year. Covering it over 3 years

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OP, I have a similar income and had to pay in 1k with 2 marked on my tax form. I also received a refund last year, I was pretty shocked.

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Omg, HOW?

We learned this lesson last year, following the instructions for tax withholding never withholds enough. Once you pass around 90k income, even putting Married but withhold at single rate and zero exemptions, we still owed taxes. I feel like the rate is set up to assume you have children and will get that deduction. We had to both do Single withholding, 0 exemptions, and do an extra $50 per pay to get closer to what we actually owe each year.

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Wow that’s insane. Thanks for sharing this, it’s good advice.

I’d bet this has to do with a TJAAR form not being used

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Is this something that I am missing on my end?

Lots of people here seem don’t seem to realize the W-4 form changed last year...

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Did you have any interest or investment income? That’s how I ended up owing more tax than I anticipated

A1- No, just money I put in 401k/Roth IRA through employer, and company stock purchase. I also got an HSA where my employer put $1000 (on which it looks like I also owe taxes).

Last year I had to pay an additional $1500. Thankfully I got a stimulus check and all of it went to taxes. I haven’t done my taxes this year yet but if I don’t get a refund I might as well declare bankruptcy in my current situation

Seriously! That taxes owed amount was a hard pill to swallow!

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