I was getting back around $750 (from job which I made $44,000 - single status), then I added a second job which only had $3,500 gross income and $350 taxes payed and my refund dropped to $200. Is this right?
2007-02-03 02:03:12 · 6 answers · asked by Jason R 1 in Business & Finance ➔ Taxes ➔ United States
Yes, that's quite normal when you have 2 or more jobs. The withholding on the the second job presumed that it was your only job and was not enough to cover the tax liability for that income.
With $44,000 in gross income from your first job your marginal rate on the other $3,500 is much higher than the 10% tax that they withheld.
The reality is that you did pay in enough in withholdings in the end and therefore minimized the amount of the interest free loan that you gave to the government.
2007-02-03 02:34:26 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The federal tax code is progressive. That is, the first money you make is taxed at very low rates and then at increasingly higher rates. So the extra money you earned is taxed at your highest marginal rate. Withholding tables are based on AVERAGE rates for ther level of income AT EACH JOB. So essentially you were having taxes withheld from your second job at a lower rate.
Your objective should be to NOT make interest-free loans to the government -- and you reduced the amount of your free loan. So you were smart.
2007-02-03 02:17:14 · answer #2 · answered by SDD 7 · 0⤊ 0⤋
I got accepted on the 31st and 6 days later i got a DD of today 2/8. The WMR tool is so not 100% accurate. Many people have their refund already and it is still saying processing. More than likely based on others I have seen u will probably get it no later than Tuesday. You can always call an see how helpful the IR is being. Good luck!
2016-03-29 02:56:46 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Yes. When you have two jobs...the tax withholding table does not account for your other job - and assumes the income from that job is your ONLY income.
The second job had only 10% withheld from your wages...you are in a higher tax bracket than that.
If you want a bigger tax refund, you will need to increase the withholding from one of your jobs (fill out a new W4 with your employer).
The second job had only 10% withheld fromyour wages...you are in a higher tax bracket than that.
2007-02-03 02:07:14 · answer #4 · answered by Anonymous · 1⤊ 0⤋
you were taxed on your second job as if it was your only job (at a lower Rate). make sure you haven't over payed on unemployment insurance or government pensions.
consider the lack of refund as an interest free loan until tax time and use the extra few bucks to pay down debts all through the year rather than asking the government up up your taxes on your second job.
2007-02-03 02:12:58 · answer #5 · answered by Dave 3 · 0⤊ 3⤋
they probley didnt tax it enough i know some people take out extra from their checks for taxes so that dont happen.me personally i dont make close to that.but i know u shouldnt have claim the second job till next year then
2007-02-03 02:09:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋