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Second Job

I am considering a second job.  Is there a Federal tax penalty or higher tax bracket for a second job, or is all that based on total annual income only?

3 Replies
Level 15

Second Job

There is not a penalty for having income from a second job.   Your tax bracket depends on the total amount of your income, no matter what the source of the income was.  

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 15

Second Job

@JM136 - the tax bracket is based on the sum of the two jobs..... but here is the issue I see when this occurs....many end up owing comes tax time.  Why?


Beacuse each employer withholds tax based on the federal tax tables not knowing about the other employer.  So the tax bracket ends up lower when looked at separately vs. adding the income together.  When you fill out the W-4 for the 2nd employer, suggest getting very conservative, Single and you may want to withhold extra each paycheck to mitigate the issue comes tax time. 

Level 15

Second Job


The IRS has a withholding calculator which makes it easier to get the answer than the 4 page W-4 worksheet :

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