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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2855
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Please respond only if you can tell me why my taxes jumped

Customer Question

Please respond only if you can tell me why my taxes jumped significantly this year.
I am filing joint returns with my wife and have 3 kids under 18. We both have full time jobs and own rental properties.
Every year, I do a sanity check to see if my taxes are correct. I divide what I need to pay in Federal Taxes (box 74 and 75) by Wages (1040 – box 7). Every, year it varies between 13% to 14%. This year, it suddenly jumped to 16.9%. My itemized deductions, capital gains and dividends hardly changed. Wages went up from $109,000 to $123,000. I earned that much couple years ago and only had to pay 14%.
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.
I will be able to verify if you provide both your tax returns - for current and prior tax year.I will compare and will provide detailed analysis.
Customer: replied 8 months ago.

I tried to upload it and is not letting me. Do you have an email that I can send it to?

Expert:  Lev replied 8 months ago.
I am ONLY allowed to communicate outside this site via Premium Service.I am sending you an offer - please review and accept.Then - we will be able to communicate via email.
Customer: replied 8 months ago.

Is satisfaction guaranteed?

If the analysis will save me money, I don't mind $52.

I don't want the answer to be that I am paying more taxes because my wages increased.

Expert:  Lev replied 8 months ago.
I am sorry - but we are talking too long and as you might know that is very busy time for all tax folks.If you do not like the offer - just post your information here.Without additional information I would not be able to tell anything.I will be working with office clients today - and will be back late evening.
Customer: replied 8 months ago.
Relist: Incomplete answer.
Please respond only if you can tell me why my taxes jumped significantly this year.
I am filing joint returns with my wife and have 3 kids under 18. We both have full time jobs and own rental properties.
Every year, I do a sanity check to see if my taxes are correct. I divide what I need to pay in Federal Taxes (box 74 and 75) by Wages (1040 – box 7). Every, year it varies between 13% to 14%. This year, it suddenly jumped to 16.9%. My itemized deductions, capital gains and dividends hardly changed. Wages went up from $109,000 to $123,000. I earned that much couple years ago and only had to pay 14%
Expert:  Barbara replied 8 months ago.
Different expert here - my name is ***** ***** I will be happy to assist you.The easiest way to determine the increase in your tax liability is to compare the following lines on your 2014 and 2015 1040's.Line 38Line 43Line 44Line 45 (did you trigger AMT?) If so, an amount will appear on this line.Line 63Line 74.If it still does not make sense, please let me know.Thank you and best regards,Barb