Hi All - if this isn't the appropriate place to ask this non-legal question, excuse me. I know many of you are very knowledgeable so I thought I would get some great answers.
My wife and I prepared our tax return this week and according to the math, we will owe the IRS over $2,000 in federal taxes. I have no idea why this is the case. Our joint gross income is $80k. On my W-2, I have 2 exemptions, and per the personal allowances worksheet, this is the "correct" amount to have. My wife received 3 w-2's, all of which she has listed 0 personal allowances. She also received $3,200 from 1099-MISC sales commissions of which NO tax was withheld, and $2,100 from an insurance provider for 3rd party sick benefits, of which only social security and medicare tax was withheld. We moth make contributions to qualified retirement plans (401k's) and I also had deferrals going into a QHDP HSA. Finally, we had our first child in Oct. 2015.
Is there anything I'm missing? With using a standard deduction of $12,600 and the child tax credit, how can we owe this much money in federal taxes when we both had the "normal" amounts withheld? If it matters, we filed jointly last year, had income slightly lower, no child, and got a refund in excess of $1,500.
Thank you.
PS - I have never itemized healthcare costs because I was under the assumption that ANY payments made (co-pays, prescriptions, bill balances) from a qualified HSA couldn't not be itemized due to "double-dipping" since HSA funds are pre-tax deductions. Is this accurate?

