I had 2 jobs in 2006, got less tax when filing tax online?

Question

I have gross income about $9000 on my first job. Then about $4000 on my 2nd job during past year. When I was filing tax info online, I have $1077 tax refund from my first job. After I key in 2nd w-2 info for my 2nd job, I got less refund: $1055.
If caculate them separately, I got $1077 on from my first job, $355 on my second job. Total I should get should be 1077+355=1432. Is there something wrong?

Answer 1

Taxes are calculated on your "total income". This includes your wages from all jobs as well as your income from other sources - interest, dividends, and lots of other things the government wants a piece of.

At lower income levels you pay little or no taxes, you may even be eligible for some credits - money the gov't would pay to you. The more income you make as you add up all those W-2's, 1099's and stuff the higher the taxes get.

Your refund is really pretty high - 8% of your total income. Unless you really couldn't save it up yourself, you might want to review your W-4 (withholding numbers with your employer) and have less taken from your check each payday. Try to save the difference and build up your own savings. Of course the gov't will tax the extra interest you earn, but you'll still come out ahead.

Answer 2

No, there is nothing wrong. This is normal if you think it through.

Both employers withheld taxes as if that job was your only job. The withholding tables presume a standard deduction based on the withholding status you claimed on your W4. Therefore the withholdings from 2 employers will be based on 2 standard deductions.

However, when you file your tax return, you only get 1 standard deduction; hence the difference.

Answer 3

well joseph, it doesnt really work like that.

ill assume you file single and claim yourself. if this is the case, for the first $8,450 you earn you will not owe any tax on this. therefore, if you input the $9,000 by itself you should basically get all your federal withholding back as a refund.

if you input the second job W-2 by itself, you will not owe any tax on the $4,000 since its below the $8,450. again, you would get all your federal withholding back as a refund.

however, when you input both W-2s, your income is now over $8,450 and you will now have taxable income. you would not get back all your withholding from each job like in the first two cases.

dont worry, there is nothing wrong. im sure you input everything correctly.