I filled out my entire tax information in turbotax (standard decuctions with student loan interest decucted) except for my second income (part time job) and had an estimated refund of $1492. When I entered my second W2, approximately $6800 extra in income, it lowered by refund by almost $1400. I am claiming single and 0 on the second job and the additional income didn't change my tax bracket. How is this affecting everything so significantly?
When you enter your first W-2, some part of it is not taxable because your standard deduction and exemption is subtracted from the income. When you enter your second W-2, all or most of your deductions are used up by the first W-2 so most or all of your second W-2 is totally taxable so it reduces your refund.
When you enter your first W-2, some part of it is not taxable because your standard deduction and exemption is subtracted from the income. When you enter your second W-2, all or most of your deductions are used up by the first W-2 so most or all of your second W-2 is totally taxable so it reduces your refund.
Thank you for the information! I added a few details into that question after I had accidentally posted it early. My second job, around $6800 in income was only 6 months worth of work. Going into this next year, do I need to with hold extra so that I don't owe at the end of the year when that extra income will be around double that?