(1)W-2 Entered - Refund $2912 (2)W-2 Entered - New Refund $2916 Switched the Input order (2)W-2 Entered - Refund $1476 (1)W-2 Entered - Refund $2916 Why?

cody-james-allen — Sat, 01 Jun 2019 17:46:13 GMT

Wondering why both W-2's separately can give me a combined total of 4392 dollars, but when added together they only add up to a refund of 2916. Its as if the (2)W-2 one only gave me 4 dollars when entered second, but gave me 1476 when entered first.

We pay taxes based on total income - not per W2. So, mor...

AnthonyC — Sat, 01 Jun 2019 17:46:17 GMT

We pay taxes based on total income - not per W2. So, more income tends to mean a higher tax liability (you progressively pay more taxes at a higher rate with the more income you earn). You also may lose eligibility for credit credits like the Earned Income Credit when you add more income.

But, what you are seeing is mostly because of how the standard deduction works. TurboTax applies the standard deduction automatically against your first W2 (or other income entered).

Example: If you are single the standard deduction is $12,000 (would be $24,000 if MFJ) and you have two W2s for $12,000 each. TurboTax automatically applies the $12,000 standard deduction against the first W2 - so you effectively pay no taxes on this first W2 and you get all of your withholding back. This leads to a big refund. But, now when you enter your next W2, you have to pay taxes on the entire amount - so you may not get much of a tax refund increase (and in many cases, it can decrease your refund).

For a more detailed example of a similar question see this article -

https://ttlc.intuit.com/replies/3798403

topic (1)W-2 Entered - Refund $2912 (2)W-2 Entered - New Refund $2916 Switched the Input order (2)W-2 Entered - Refund $1476 (1)W-2 Entered - Refund $2916 Why? in Get your taxes done using TurboTax

(1)W-2 Entered - Refund $2912 (2)W-2 Entered - New Refund $2916 Switched the Input order (2)W-2 Entered - Refund $1476 (1)W-2 Entered - Refund $2916 Why?

We pay taxes based on total income - not per W2. So, mor...