Lower return

[Zachsms3]

Hi there everybody. I had two jobs during 2021. I already filed a W-2 for 2021 but I forgot to add my second jobs W-2 so I went to amend and add that and it’s saying I owe about 500 which would mean I wouldn’t even be getting anything for my second W-2 as I started that job late 2021. In 2020 I had 2 jobs for that year and adding a second W-2 made my refund go up a bit. I’ve never had to owe money on my taxes. Why could this be? Am I making a mistake? Is there a mistake?

[ErnieS0]

Whether you get an additional refund or owe tax from adding a second job depends on the amount of income and withholding you are adding.

Without seeing your return, it's not possible to tell.

Adding income may put you in a higher tax bracket. It may also lower or eliminate some credits such as the Earned Income Tax Credit or education credit. 

Withholding on each job is figured as if that is your total income, unless you made the multiple job adjustment on your W-4. If you had, say a part-time job, generally almost no tax would be withheld because the income would be so low. But if added to a full-time job, the tax rate would be much higher and you would owe on the total.

It's also possible the W-4 on one of your jobs was filled out wrong.

[Zachsms3]

I believe it’s filled out right but is there any way an expert could take a look at all my info?

[DawnC]

Most of the time, when you add a second W-2, your refund will drop.   So, what you are describing is completely normal and expected.   Most people see their refund go down, sometimes by a lot, after entering a second W-2.    This is because we start you off with the full standard deduction, which we subtract from the income you’ve entered so far.    You don’t get this deduction with each W-2 you enter, just the first one.  This means your second W-2 will appear to be taxed more, but what’s really happening is that you’re getting a more accurate picture of your income.

Read over this FAQ to see an example.   Why did my refund drop when I entered a second W-2?

TurboTax Live includes help from a tax expert when you need it, and the option for a final review of your return.   Click here to see how to add this option if you are interested.