refund decrease return

How is it that my refund went down after entering in the second W2? Shouldn't it go up?
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    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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