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What does having a new job mean for my taxes?

SOLVEDby TurboTax310Updated 2 weeks ago

Whether you changed careers, or took on another job to supplement your income, here’s what having a new employer means for your taxes.

You'll get a W-2 or 1099-NEC from your new employer

This year, you’ll have two income forms—one from your previous employer, and one from your new employer. In the Wages & Income section, we’ll help you enter all of your forms. If you filed using TurboTax last year, your previous employer's info will carry over, so you’ll just have to confirm their details and enter your wages from them this year. Adding your new W-2 or 1099 is easy. You can even snap a picture from your phone to upload it.

You might be in a new income tax bracket

If your new job came with a pay increase, you might have moved to a new income tax bracket. Tax brackets are ranges of income that correspond to income tax rates depending on your filing status. Just enter all your info, we’ll figure out your rate and include it in your Federal Tax Return Summary.

Consider updating your withholdings and moving your 401(k)

Starting a new job is the perfect time to review your W-4 and adjust your withholdings. You can change your filing status, add dependents, or say that you have multiple jobs. Depending on what you select, this will tell your employer how much tax to withhold from your paycheck—ultimately affecting how much you’ll be refunded (or owe) at tax time. You might also want to move your 401(k) to your new employer to avoid fees. You won’t be taxed or penalized doing this, and you’ll still be able to grow your money tax-deferred. Your employer can help you with both your W-4 and your 401(k).

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