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Why did my amount go down after i entered my second w2?
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It is quite common for this to happen for a number of reasons. You pay taxes on your total income, not based on each W2 entry. The first cause is due to the way the standard deduction and personal exemption works in our taxing system. If you are single with no dependents and not being claimed as a dependent, then the first $10,350 of your income is not taxed because of standard deduction ($6,300) and your personal exemption ($4,050) - and these amounts are greater if you have dependents or are married.
So, when you entered your first W2, you likely didn’t pay tax on a good portion of that income, which leads to getting more of your Federal withholding back. But, then when you added another, your taxable income increased as well as your tax liability. So, instead of being able to get more withholding back, you had to use it to pay tax.
Also, as your taxable income increases, you may even get placed into a higher tax bracket. You may also lose eligibility for income-based tax credits such as the Earned Income Credit or lose the ability to claim certain deductions as your income increases.
When entering multiple W2s it is really best to ignore the refund meter until you are completely done the process. I have included an article below that has more detail on this topic.
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