You've got that partially correct.
The way the payroll system works is they try to average out your taxes for the whole year.
Let's say you earn $5,000 a month. that equals $60,000.
The standard deduction for a single person is $12,950.
Subtract $12,950 from $60,000 = $47.050
At a 10% tax rate the tax is $4,705,
If you get a second job for $2,000 a month. that equals $24,000.
The standard deduction for a single person is $12,950.
Subtract $12,950 from $24,000 = $11,050
At a 10% tax rate the tax is $1,105,
Taxes withheld were $4,705 + $1,105 = $5,810
Your actual tax is:
$60,000 + $24,000 = $84,000 - $12,950 = $71,050
At 10% the tax is $7,105
You owe $1,295.
Add to that if you start to increase tax brackets it can be worse.
You have to indicate the income from the first job when you fill out the W-4 that your employers sends to the payroll department.
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