turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

When I added my first w-2 it said my federal so far was 1,199 when I added my second one it said dropped to 1,053 how it that possible?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
maglib
Level 11

When I added my first w-2 it said my federal so far was 1,199 when I added my second one it said dropped to 1,053 how it that possible?

Your second w-2 may have put you into a higher tax rate bracket .  Your employer was only withholding based on the knowledge that was the only income you received that year so withheld at a lower rate than you were actually subject too.  Do note a that a refund is a tax-free loan to the IRS. You may want to have less withheld and invest the savings...  Or many use it as forced savings but it is not the best financial strategy.

I hope this helped.  Good luck. 

**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I am NOT an expert and you should confirm with a tax expert.

View solution in original post

1 Reply
maglib
Level 11

When I added my first w-2 it said my federal so far was 1,199 when I added my second one it said dropped to 1,053 how it that possible?

Your second w-2 may have put you into a higher tax rate bracket .  Your employer was only withholding based on the knowledge that was the only income you received that year so withheld at a lower rate than you were actually subject too.  Do note a that a refund is a tax-free loan to the IRS. You may want to have less withheld and invest the savings...  Or many use it as forced savings but it is not the best financial strategy.

I hope this helped.  Good luck. 

**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I am NOT an expert and you should confirm with a tax expert.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies