I have a second job that I started a couple of months ago, how do I make sure that I am taking out enough taxes so I don't owe anything at the end of the year. I already have to pay a couple of hundred per year for my first job. Trying to eliminate owing anything at all.
For your primary job with the highest income, you should have the W4 exemptions match your filing status and dependents claimed. For example, if you are married filing joint and have 1 dependent, list 3. However, for your second job, list 0, so that the maximum amount is deducted.
This helps ensure that the correct amount of tax is deducted, when the income from your second job is combined with your primary job. Do you know where to enter on W4?
While the W4 does not look like a complicated form, it can be quite confusing when you have more than one job. When you have more than one income (you have two jobs or both you and your spouse work), the payroll system at each employer needs to know this in order to withhold taxes based on your total income from all your jobs. By taking your combined income into account, each employer's payroll system will be able to estimate your tax bracket and required withholdings more accurately. You will need to submit an updated W4 for your current employer and one for your new employer.
Income from employer #1 = $50K
Income from employer #2 = $25K
When completing the W4 for Employer #1, you want to indicate in the "Step 2: Multiple Jobs or Spouse Works" section that there is an additional $25K being earned through Employer #2.
When completing the W4 for Employer #2, you want to indicate in the "Step 2: Multiple Jobs or Spouse Works" section that there is an additional $50K being earned through Employer #1.
This will annualize your income in the payroll systems to the $75K you expect to earn in a year.
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