I entered two w2's this year. The smaller one where I only made 7k is getting me 1400$ in a refund, but the w2 where I made over 40k is only getting me like $150 back.

[sszull0]

I'm just confused as to why the smaller w2 is getting me so much more than the bigger one. My refund last year was two times as big and I made less.

[SteamTrain · Accepted solution]

The problem you are seeing is that all your deductions and exemptions are applied to whatever W-2 you enter first...then most of these deductions are used up.....so most or all of the second W-2 is being taxed at the full rate.  

(also depends a lot on what your tax withholding was for each W-2 form)

The taxes are figured on your total income from everywhere.

Try Deleting the smaller W-2 and see what's left...then re-enter the smaller one.  The final result is dependent on your total picture...not partial information.

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example (rough): 

A single person has a W-2 with $10,000 income and $1000 Fed withholding. Since his Std Ded + Personal exemption is just over 10,000, he'll likely get all that $1000 withholding back because he ends up with zero "taxable" income.

Then he adds a $40,000 W-2 with (say) $4000 Fed withholding.  Most of that $40K is being fully taxed because his Std Ded and exemption is already used up  the tax on that additional $40k is ~$5800.  His $1000 from the first W-2 is combined with the $4,000 of the second W-2 as a $5000 credit and he owes another $800 to the IRS.

[SweetieJean]

and the end result is the same, regardless of what order you enter them in.