Hi all,
Feeling pretty lost with combining finances and filing this year for the first time as a married couple. We ended up owing about 2,500 to the feds- totally unexpected, and I would like to adjust moving forward so this does not happen again. We are in Virginia and both filing as married but without taking extra withholdings. I started working in May of 2020 and did not work or have income before that in 2020. I have continued to work and together this year we will probably bring in $180,000. We have one dependent.
Here is what the breakdown for 2020 was:
Total income: 142,630
Fed dedications: 25,107
Taxable income: 117,523
Federal credits: 2,000
Fed taxes we owe: 15,435
Fed taxes we paid: 12,918
Fed balance due: 2,517
VA refund: 300
Looks like we are supposed to be paying taxes quarterly this year- I've never had to do that either. Is that mandatory?
How can we adjust our filing to make it so we do not owe for this year?
Thank you, thank you, thank you!!!