Why Do I Owe Taxes This Year But Not Last Year

No view

I would start by double checking all of your entries on this years taxes. If correct, the next step would be to compare all entries in yo .Last year i received $500+, but this year i actually owe 75 which i do not understand. I am 21 single and do not have any dependents, my job title .Four possible reasons for the difference: Taxable Income: Did you use Taxable Income the Turbotax tool? This would be after removing the amount withheld for health insurance and 401K. State Income Tax. If you itemize you can reduce your taxes, but you will have to add as income your state income tax .Judging by the amount the average American has over-withheld from his or her pay, we 're scared to of owing the IRS even the smallest amount at tax time. However, if you do that without careful planning, you might be setting yourself up for an unpleasant year-end surprise. 2. Extra income not subject to withholding..