Hello all, I tried looking at other questions related to mine, but they all seem to deal with foreign tax issues, so I was wondering if anyone knew why, in the U.S., taxes on a second job are much higher and what the tax rate is? I just took on a second job and noticed that the taxes taken out were ridiculously high, but it seems to be something that happens. Does anybody know why and what the rate is on a second job? I make around $7,200/year on my first job, and close to $2,000/month on my second job. I'm a college student, by the way.
2007-08-09 14:30:15 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You don't get charged extra tax on a second job. You pay taxes on the amount that you make. If you only earn 7200.00 a year on your first job and 2,000.00 a month on your second the amount of tax you pay for your second job would be a lot higher due to the amount of money you are making.
2007-08-09 14:40:44 · answer #1 · answered by Anonymous · 1⤊ 0⤋
They don't. But on your return, you get exemptions for yourself and your dependents if you have any, and a standard deduction or itemized deductions, and these all get subtracted from your income before you figure your taxes. But you only get them once - so since they've been subtracted from your income on your first job, there's nothing left to subtract for your second one, so you are paying taxes from the first dollar, starting where your other job left off to caluculate your tax bracket.
What's taken out of your paycheck on either job for income tax depends on what you put on your W-4.
In your example, on your "second job" you make over three times as much as on your first - so of course the taxes are going to be higher - and since it's a progressive tax system, they'll be a higher percent.
2007-08-09 14:54:01 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You should call or talk to a tax specialist on this one.
2007-08-09 14:39:24 · answer #3 · answered by thresher 7 · 0⤊ 2⤋