If your circumstances have changed, you may end up owing taxes when you usually get a refund. Common reasons include underpaying quarterly taxes if you're self-employed or not updating your withholding as a W-2 employee. You may also owe if you collected unemployment benefits, which are taxable.
A progressive tax system means that tax rates increase as your taxable income goes up and your income enters a higher tax bracket. This has you pay a greater rate of tax on each successive chunk of income. Each chunk of income—income in a tax bracket—shows the percentage of tax you pay on that portion of your income.
So, according to the return you have done, you had too little withheld from your income compared to what your liability is, therefore you owe money. Not having taxes from $1300 might be part of it. With multiple jobs it may be likely that one or multiple of them you just didn't have enough withheld.
The amount of tax you owe in a given year is based on your earnings for that year. That might seem like an obvious point, but many people are unaware of how the household income tax brackets work. Not only do you owe more gross taxes as you earn more, but you are also paying a higher percentage of your earnings.
You're in a Higher Tax Bracket
But a raise could put you in a higher tax bracket. Tax brackets are income ranges taxed at specific rates. So, for the 2023 tax year, if you're single and your taxable income falls somewhere between $44,725 and $95,375, that means you're in the 22% tax bracket.
Common reasons for owing taxes include insufficient withholding, extra income, self-employment tax, life changes, and tax code changes.
If you claimed 0 and still owe taxes, chances are you added “married” to your W4 form. When you claim 0 in allowances, it seems as if you are the only one who earns and that your spouse does not. Then, when both of you earn, and the amount reaches the 25% tax bracket, the amount of tax sent is not enough.
It could be one big change or several changes that made an impact: Filing changes – But big life changes, such as marriage, divorce, retirement or adding a dependent (having a baby, adopting) can affect the your tax situation such as the filing status for which you are eligible and other aspects of how you are taxed.
Increasing your income might move you into a higher marginal tax bracket, but you'll only pay the higher tax rate on the dollars that rise above the previous, lower tax bracket. Be aware that you might become ineligible for certain social services and tax breaks after getting a raise.
You can increase the amount of your tax refund by decreasing your taxable income and taking advantage of tax credits. Working with a financial advisor and tax professional can help you make the most of deductions and credits you're eligible for.
If you want to avoid a tax bill, check your withholding often and adjust it when your situation changes. Changes in your life, such as marriage, divorce, working a second job, running a side business, or receiving any other income without withholding can affect the amount of tax you owe.
The lingering impacts of the pandemic, including changes in income sources, tax relief expirations, and new legislation, have all contributed to changes in tax liability. These factors might explain why you owe taxes in 2024.
No. You can't claim yourself as a dependent on taxes. Tax dependency is applicable to your qualifying dependent children and relatives only.
By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.
The amount of tax withheld from your pay depends on what you earn each pay period. It also depends on what information you gave your employer on Form W-4 when you started working. This information, like your filing status, can affect the tax rate used to calculate your withholding.
The minimum income amount depends on your filing status and age. In 2023, for example, the minimum for Single filing status if under age 65 is $13,850. If your income is below that threshold, you generally do not need to file a federal tax return.
Claiming 1 on Your Taxes
Claiming 1 reduces the amount of taxes that are withheld, which means you will get more money each paycheck instead of waiting until your tax refund. You could also still get a small refund while having a larger paycheck if you claim 1.
Minimum income requirements for filing taxes in 2025
You probably have to file a tax return in 2025 if your gross income in 2024 was at least $14,600 as a single filer, $29,200 if married filing jointly or $21,900 if head of household. If you were 65 or older at the end of 2024, those minimum income limits are higher.