WHY DO I OWE TAXES THIS YEAR?

Realize that you owe taxes when you were expecting a refund?  We get it. We’re here to break down what might’ve happened and what you can do next. At Liberty Tax, we help taxpayers make sense of it all—because understanding why you owe is the first step to fixing it and avoiding surprises next year. 

Top 4 Reasons You Might Owe Taxes This Year 

1. Side Hustles or Freelance Income
Got paid through a gig economy app like Uber, DoorDash, or Etsy? That income is often not taxed up front—which means you’ll owe taxes on it later. 

2. Unemployment or Government Benefits
Unemployment benefits count as taxable income. If no tax was withheld, it could tip your balance toward owing. 

3. Life Changes
Big events like marriage, divorce, having a baby, or buying a home can shift your tax liability—and possibly reduce your withholding too much. 

4. Tax Credit Repayment
Did you receive an advance premium tax credit for health insurance? If your income ended up higher than expected, you might have to pay part of that back. 

What Should You Do If You Owe? 

Don’t panic—seriously. Owing taxes isn’t the end of the world, and you have options: 

• Schedule a tax review to double-check your return
• Set up a payment plan through the IRS or with help from a Liberty Tax expert
• Update your W-4 to help prevent this from happening next year 
• Ask about penalty relief 

Let Us Help  

Our friendly, local tax pros are here to guide you every step of the way. We’ll make sure your return is accurate and that you’re not paying more than you should. Call us today to speak with your local Liberty Tax professional 
    

Disclaimer: Every tax situation is unique. This is intended to provide generalized financial information designed to educate a broad segment of the public; this is not personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.