turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

sszull0
New Member

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.

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.
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

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.

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.

_____________________ 

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.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

2 Replies

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.

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.

_____________________ 

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.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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.

and the end result is the same, regardless of what order you enter them in.
Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question

Related Content

Manage cookies