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This is completely normal. You can't do individual returns for each W-2 you receive. You get only one standard deduction per year. When you enter your first W-2, your standard deduction is included and offsets some of your wages. When you enter the second W-2, you do not get another standard deduction. This income gets added to your first W-2 and you still only get the one standard deduction.
If you get five W-2s or only one, it does not matter. They all have to be entered together on one return with one standard (or itemized) deduction. Your income is the total of your W-2s.
Why did my refund drop after entering additional W-2s? See the 3rd bullet point; you may want to update your W-4(s).
You should update your W-4s, you complete the calculation one time, and then submit W-4s to all your jobs based on that one calculation. Or use the IRS calculator here.
https://www.irs.gov/individuals/tax-withholding-estimator
If you file a W-4 as married but with no other adjustments, the system assumes that you will get the standard deduction, and withholds assuming you will file that way. But if both spouses work, both spouses are subject to reduced withholding because both spouses are getting credit for the standard deduction, but you only get one standard deduction on your tax return. There are a couple of adjustments you can make on the W-4 by following the instructions for couples with 2 or more jobs.
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