Why do I owe taxes this year when my income doubled?

Thanks for explaining! So if I'm understanding correctly, it's better to owe a little or get nothing back than to get a big refund? Also, should I adjust something on my W-4 for next year so I don't end up owing a lot more?

Yes, from a purely financial perspective, it's better to break even or owe a small amount rather than get a big refund. When you get a refund, it means you've essentially given the government an interest-free loan with your money throughout the year instead of having it in your own pocket. For your W-4, it depends on your preference. If you'd rather ensure you don't owe anything, you can increase your withholding by either claiming fewer allowances or specifying an additional amount to be withheld from each paycheck. But if you're comfortable with the current situation, your withholding is actually calibrated quite well since you're only owing $15.

Did it actually explain things better than TurboTax? I find their explanations confusing and was wondering if this is worth checking out before I finalize my return.

I'm a bit skeptical about these tax services. How does it work with security? I'm always nervous about uploading my tax docs to random websites.

It definitely explained things better than TurboTax for me. TurboTax just gives you the numbers, but taxr.ai actually showed me why my withholding wasn't enough for my new salary and gave recommendations for fixing it. It was like having a tax professional explain everything. Regarding security, they use bank-level encryption for all documents and don't store your sensitive information after analysis. I was hesitant too, but they explain their security measures on the site. Plus, they just analyze the documents - you still file through whatever service you normally use.

Wait, how does that even work? I thought it was impossible to get through to the IRS. Is this some kind of paid service that jumps the line?

Sounds fishy. The IRS phone line is a government system. No way some third party can magically get you through faster. I've tried calling them dozens of times and it's always "due to high call volume..." then disconnect.

It uses a system that monitors the IRS phone lines and calls for you, then connects you when it gets through. You don't have to sit there pressing redial for hours. It's basically like having someone wait on hold for you, and they call you when they reach an agent. And yes, it's exactly for solving the problem you described - the "due to high call volume" situation where you keep getting disconnected. That's what kept happening to me until I found this. It doesn't "jump the line" - it just handles the tedious part of getting through in the first place.

Is there a simple way to check if your withholding is correct? I just started a new job and don't want to be surprised next April.

The IRS has a Tax Withholding Estimator tool on their website that's pretty straightforward to use. You input your income, filing status, and other tax situations, and it calculates whether your current withholding is appropriate or if you need to adjust your W-4. I'd recommend running this calculator midway through the year to make sure you're on track. It's especially important if you have multiple jobs, a working spouse, or any significant changes in your financial situation during the year.

It does seem unnecessarily complicated, but there are some free resources that can help. I've been using the free filing options through the IRS website for years and haven't had any issues. They partner with several tax software companies that offer free filing if your income is below a certain threshold.