Like I said, I work a full-time salaried job at $48K a year, and a part time job that earns $5500 a year. Both jobs are in a different tax bracket. The full-time is in the 25% bracket, but the part-time is in the 10% bracket. Will the part-time job ruin any potential refund I may get since both incomes are added together at the end of the year?
2007-02-05 06:56:20 · 5 answers · asked by newpoint60618 2 in Business & Finance ➔ Taxes ➔ United States
Yes it will. Taxes are taken out of the p/t job at a lower rate because your W-4 doesn't show that you also have other income, so taxes are taken out like that's your only income.
You can ask to have additional amounts taken out of each check from your p/t job. Otherwise yes, it will cut into your refund.
You said you're in a 25% bracket, but the p/t job has 10% withholding. So you're short 15% of 5500, or $825 for the year. You'd have to have $15 a week additional taken out of your p/t job paycheck to not affect your refund from the other job.
2007-02-05 09:18:53 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
jobs aren't in a tax bracket. you are in a tax bracket based on your total income. yes the WITHholding will be different for each job because it's based on an expected tax bracket if that were your only job. You might consider having your withholding changed to 25% on the part-time job because yes, they are under-withholding based on your tax bracket. or have the withholding from your better job increased so you won't have tax liability at the end of the year.
2007-02-05 15:05:23 · answer #2 · answered by Sufi 7 · 0⤊ 0⤋
Very possibly!
In that situation you must ensure that sufficient tax is withheld to cover your total tax liability. With a primary job in the 25% tax bracket, you need to make sure that the other job withholds at least 25% for income taxes -- more if it puts you in a higher tax bracket. Or you could jack the withholding on the primary job, it's your choice how you handle that.
2007-02-05 15:12:36 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Depends on how much tax you had withheld. You use both incomes when arriving at your taxable income. Withholding from both is applied to any tax that you owe. If both COMBINED exceed tax owed; you will have a refund, depending upon your other deductions. Your question is just a little too simplistic for anyone to answer with great accuracy here.
2007-02-05 15:03:48 · answer #4 · answered by MJ 4 · 0⤊ 0⤋
You tax is assessed on your total income from all sources (full time/part time, etc). Your refund
amount depends on how much is already withheld from your paychecks and your total taxes. Assuming
your filing status as single, for your total income ($53500.00) your total taxes will be around 7820.
If your filing status is different or got dependents, use the tax calculator at
http://findtaxservice.com/taxcalculator/2006taxcalculator.html to estimate your taxes. Now subtract
all the taxes withheld from paycheck and that is you refund.
2007-02-05 15:25:33 · answer #5 · answered by onlinetaxsiteswatch 2 · 0⤊ 0⤋