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When you have two jobs, accurately completing your W-4 forms is crucial to avoid underpayment penalties or paying too much in taxes. The W-4 form, "Employee's Withholding Certificate," tells your employer how much federal income tax to withhold from your paycheck. Having two jobs complicates this, as withholding calculations are usually based on a single income . You would complete step 2 on the Form W-4 if you have a second job. The IRS also has a withholding estimator that is fairly accurate in predicting how much tax liability you might have. This calculator can be found at  on the IRS website. I have posted the link below. There is also a worksheet on page 3 of form W-4 for manually calculating your projected income tax liability. If you follow the steps on Form W-4 you should have enough withholding to cover your taxes from your jobs and any other taxable income you might have.  https://www.irs.gov/individuals/tax-withholding-estimator 

There is a selection in Step 2 on the W-4 form to indicate that you have multiple jobs or spouse works.  You could both check mark option (c).  Because the state retirement income also comes into play, another option is to use our withholding calculator to determine an additional amount that can be withheld by indicating it in Step 4(c).  The recommended extra withholding can either be entered on one of the W-4s, or broken up between the W-4s.   @danjoh1969 Hope this helps! Cindy

Owing federal income tax at the end of the year.  Here are some scenarios: Under-withholding: Each job assumes you have only one source of income.   Your tax rate increases as your income rises.  Limited Standard Deduction: You can only claim one standard deduction on your tax return, regardless of the number of jobs you hold.   Incorrect W-4 Form: Outdated or inaccurate information on your W-4 forms, especially regarding allowances or multiple jobs, can lead to under-withholding.  Other income sources without withholding: If you have other sources of income that don't have taxes automatically withheld, like side work, investment income or self-employment,  you'll need to account for those when determining your tax liability.  How to avoid owing taxes or a large tax bill:  Complete a new W-4 Form.   Here is a great link to calculate your tax liability and prepare an updated W-4:  W-4 Tax Calculator   Account for all income sources:   When completing your W-4 form, ensure you account for all sources of income, including secondary jobs and other income sources that do not have automatic withholdings.  Make estimated tax payments:  You can make quarterly estimated tax payments to the IRS.  Here is the link for estimated tax payments:   IRS estimated tax payments 

to clarify "110% if your Adjusted Gross Income in previous years was over 75,000 if filing single  or 150,000 if filing jointly"   the threshold for filing single is 150k also.  it's 75k if married filing separately   from form 2210 instructions:   Higher income taxpayers. If your adjusted gross income (AGI) for 2023 was more than $150,000 ($75,000 if your 2023 filing status was married filing separately), substitute 110% for 100% in (2) above

You should report any additional income earned from a second job on the highest earners Form W4 and increase the withholdings in the extra withholdings section of the Form W4. You will locate the appropriate amount in the worksheet for multiple jobs found in the instructions.  For married taxpayers, coordinating the withholdings is essential, given the potential combined income to affect tax brackets and tax liabilities. The goal is to withhold enough to match your tax liability, avoiding both a large tax bill and overpaying, which effectively gives the government an interest-free loan. Key Steps to Adjust Withholdings To ensure you and your spouse do not owe money each year:   Understand Your Tax Situation Combined Income and Filing Status: Most Couples benefit from filing jointly, which doubles certain deductions. However, calculate both joint and separate filing options to determine the most advantageous approach. Deductions and Credits: Account for eligible deductions (e.g. mortgage interest, charitable contributions) and credits (e.g. Child Tax Credit) that reduce taxable income. Use the TurboTax Tax Withholding Estimator. Complete and Update Form W-4 Submit New Forms to include the Multiple Jobs Worksheet: If both spouses work, use the Multiple Jobs Worksheet to coordinate withholdings. This prevents under-withholding, which can lead to a tax bill. For example, if both earn similar amounts, check the box on Line 2c of Form W-4 to indicate this, ensuring proper withholding. Additional Withholding: Use Line 4c on Form W-4 to request extra withholding if you anticipate owing more due to non-wage income or other factors. This can help cover potential shortfalls. The Multiple Jobs Worksheet is located within the Instructions to the Form W-4. In order to calculate the amount to report on Line 4c you will match the highest earning W2 and the lower earning W2 column in the table. Within the table you will locate the amount of extra withholdings to report. Divide this amount by the number of pay periods for the W2 earnings to calculate the amount required to withhold in addition to regular withholdings. Review and Adjust Periodically Annual Review: Check withholdings at least once a year, especially after major life events. The IRS recommends a "Paycheck Checkup" to ensure withholdings align with your tax liability. Monitor Paystubs: Regularly review paystubs to confirm correct amount is being withheld. Additional Resources IRS Publication 505: Provides detailed worksheets and examples for tax withholdings and estimated tax. Form W-4 with Instructions plus Multiple Jobs Worksheet. TurboTax Withholding Calculator Have an amazing day! Zachary W (CPA 9+ years) I would love a thumbs up + Mark the post that answers your question by clicking on "Mark as Best Answer"

My followup question is this:   Since we are talking about a likely tax liability for this of over $4,000 I'm thinking that I should make the payment this year and not wait until next year to file my 2025 tax return. What process should I follow to do that, other than of course completing the 1099R as you described. Can I use Turbotax for this even though I've already used it to file my 2024 tax return?    Thank you so much. I may have more later.

The withholding estimator can be found at the IRS site https://apps.irs.gov/app/tax-withholding-estimator/income-and-withholding/ A good rule of thumb is to claim 0 exemptions and if necessary you can have your employers deduct additional amounts such as $20 more each pay period.