I just started a new job and for some reason my tax withholding has increased significantly compared to the last job. Th W-4s look identical. Why did it go up?

[SteamTrain]

@junil315 

Might Depend on what your new wages are.

1)  If the new job pays higher wages/salary...then tax withholding can easily increase...even with identical W-4 forms submitted to the employer.

2)  If little change in salary/wages....then check some of the withheld $$...some non-tax withholding (healthcare..401k etc) might have gone up.

3)  or maybe the old job wasn't withholding enough in the first place.

4)  or a different payment cycle?   The old job may have been paying every two weeks (26 payments per year) vs the new one at twice per month (24 payments per year)...thus more with each paycheck?

[junil315]

Thank you. Have a follow up question.

I also got paid a sign on bonus wit this new job and expect to get paid for my relocation expenses later this year.

Could this have caused a change to a higher tax bracket and therefore higher withholdings? Or is that more for 2025 tax filing?

[SteamTrain]

@junil315  

Especially the signing bonus...definitely...that should add to your expected gross for the year.  Not only should there  have been some withholding for that...but the extra income could easily put you in a higher expected tax bracket.....requiring the employer to extract higher withholding from regular pay this year....but not next year (unless you get a raise);

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For the relocation expenses...I'm not sure since there have been some changes as to how the $$ are recorded for tax purposes.

......I "think" that if they just send you a lump $$ amount for moving, where you don't have to validate your moving expenses...then the lump they pay you is all taxable income, and that might also send you into an expected higher tax bracket......but I "think"  that if you submit your expenses, and they only reimburse you for what your actual costs were...then most or all of it doesn't get recorded as income for the year.

..but like I said, I'm not sure what the current rules are tax-wise for those $$