Part Time Job affecting what I owe

[canderson145]

I am married and file jointly.  I picked up a second job and on my 2022 taxes, we owed more than I made at this job.  I claim 0 and my husband claims 1.  It looked like we still stayed in the same tax bracket and didn't owe anything until I put this W2 in.

Should I change my filing to single & 0 to counterbalance this?  

Any advise is greatly appreciated!  My second job should be to have extra money, not owe more than I make.

[JandKit]

Hi canderson145

Adding my thoughts to others who may have spoken about this issue, I would suggest that both you and your husband complete new w-4s for the upcoming year. The taxes are based on taxable income and you need to insure that the proper withholding has been selected. Consided reducing income subject to taxes by investing in a 401K or a 403B. If not available, Consider flexible spending accounts to reduce taxable income.

Goodluck to you in the future!

[Scooter1768]

Hi canderson145, 

Insufficient withholding is a common issue when people have 2 jobs. The withholding calculations for your second job are not taking into account your other, likely larger income, and in your case, your husband's income as well.  I recommend you fill out a new W-4 for your withholdings. The 0 and 1 exemption is no longer being used and you likely need to update for both of your employers. This is a link to the newer version of the W-4.  https://www.irs.gov/pub/irs-pdf/fw4.pdf  

When you complete the W-4 make sure you look Step 2, because you have multiple jobs and your spouse has income.  In some instances, taxpayers find they have to have additional amounts withheld, which you can do in Step 4. 

[TimS5]

Hi Canderson145!

Yes and No is the answer to your question.  While electing Single 0 might reduce the effect of owing as more would be withheld from your taxes, it still may not compensate for the differential.  For example, combined income is in he 24% tax bracket, your withholding on your income would still be based on a lower tax bracket such as 12%.  Therefore, you would still be short on your taxes at the end of the year.  You may have to elect to have additional withholding on your W-4. Employee's Withholding Certificate.  Follow Step 2: Multiple Jobs or Spouse Works to assist in resolving your issue related to the amount you should withhold.