Question

My federal refund is almost 400 dollars but when I enter my last w2, it then drops to about 200 something. Why is that?

Forum|Forum|6 years ago
February 26, 2020
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The tax withheld on a W-2 is an estimate of the amount of tax you may be assessed at the end of the year. It is never perfect.

In addition, as you add W-2s, your effective tax rate increases, so what would have been an adequate withholding rate for one W-2 is no longer adequate for multiple W-2s.

It is a common problem that taxpayers with multiple W-2s owe tax (be glad you are not one of them) because the withholding on each W-2 assumed that it was your only W-2, and so under withheld for your actual income.

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