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DeluxeXL t1_jaekb7e wrote

Follow instructions on W-4 to withhold properly.

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t-poke t1_jaekjwv wrote

Your employer withholds what you tell them to. Your W4 wasn't filled out correctly. If you're working two jobs this year, you need to submit correct W4s to both employers so the proper amount can be taken out.

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Optimal-Effective t1_jaekpdu wrote

do you mean your refund went from 1300 to -291? your return is the entire thing you submit. refund is the amount you get back.

if you have multiple W2 jobs then you need to make sure your W-4 is set up properly to withhold the right amount from each job. one job does not know about the other one so they can't know what your total income will be for the year when you add up all your jobs. sounds like you did not withhold enough so you'll now owe money.

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Meldince t1_jaemyp3 wrote

When you have jobs, neither employer knows about the other from a payroll perspective. Therefore each assumes that they are the only money you make for your withholding. The US has a tax bracket system where you pay higher rates of taxes on buckets of income.

The first $10,275 of income is taxed at 10%. So your second job was withheld at 10%. However you really made more than that, so it should have been taxed at a higher rate.

If your first job was say $50,000, then that extra 7500 should have been taxed at 22% (based on 2022 rates). That's why your refund went down. You earned income that didn't have enough withheld, so you have to make up the difference.

Both employers withheld correctly as far as they knew, if you put down the standard 1 exemption withholding on both w-4s. You have to follow an alternative process for second job withholdings.

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Nateorade t1_jaeknwh wrote

When you earn more money, you owe more taxes.

You can easily withhold more at your current employer to make up the difference.

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MickFlaherty t1_jaetcnf wrote

There is a specific portion of the W4 related to other income you and anyone you are filing jointly with have. Otherwise every job will withhold only what they “see” as your income. I would assume the W-2 withheld almost nothing in federal taxes. Depending on your regular job I am going to assume you cracked the 22% mark and really should have had 22% taken from those checks.

It’s your job to inform all your jobs of other income. Your job didn’t make an error, unfortunately you did.

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fluffy_hamsterr t1_jaencb1 wrote

The side job likely withheld taxes like you were only making $7k for the year.

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