refund decrease return

How is it that my refund went down after entering in the second W2? Shouldn't it go up?
    Not necessarily.  Why would you think it should?  

    The calculation of your income tax refund or amount due involves quite a few different things, including (obviously) the income you report and the taxes paid via withholding.  The withholding on that second W-2 would have to be more than the increase in income tax on the additional income for your refund to go up; obviously it wasn't.  

    To construct a very simple example, suppose you filled out a W-4 on that second job claiming a very high number of exemptions such that the withholding on that second job was very, very small.  The income you enter with that second W-2 is going to create a lot more income tax liability then will be offset by the very small withholding actually deducted.

    Tom Young
    • i had the same question, but i ALWAYS claim the same on my w4 having the maximum withheld, why then would mine go down after entering my second w2?
    • I am having the same problem, but unlike what you're suggesting, my claims across all 3 jobs was 2 fed/state in 2011. My return went from 1200 to 700 to 400 with the addition of each w-2 and the 2nd and 3rd ones were measly 4.5k and 2.5k income. Really wish I could omit the small fries, file the bigger one and call it a day.....only in a perfect world eh?
    • I am having the same concerns.  I have withheld the maximum amount for both jobs, but when I input my 2nd w-2 (for less than 1/3 the amount of income of my first w-2), my federal return dropped from $2400 to $500. Doesn't seem logical since they withheld maximum taxes from both jobs, I would have expected it to at least stay in the same range. Did I input something wrong or is this just what you get when you work two jobs?
    • Each job assumes that it is your only job, and taxes are withheld accordingly.  When multiple incomes are combined, you end up in a higher tax bracket.  You can file a new W-4, and ask to have the withholding increased.  Juts keep in mind that getting a tax refund is the same as giving the IRS an interest-free loan all year.
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