why is it my tax return is $400 less when i include my second job?

Question

i paid out more than two thousand dollars between two jobs. if i only file my primary job, i get back almost eight. including my second job, which i paid out almost seven hundred in federal taxes, my return goes down like $400. why? this really pisses me off let me tell you. the irs are a bunch of thieves.

Answer 1

It's because the withholding tables your jobs use don't assume you have 2 jobs.

i..e the first $x is taxed at 0%, the next $x is taxed at 10%, etc.

Both jobs are assuming they are paying you that first $x at 0%. But in reality, you owe taxes on that first $x from your second job (and also at higher brackets too).

Answer 2

your predicament is common. typically your second job doesnt pay as much as your main job, therefore your second job will tax you in a lower tax bracket. then when you file your taxes the income gets combined and you get bumped to a higher tax bracket. you should increase your withholding at your second job.