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February 12, 2022
Question

Why did my refund go down after entering a second W2? why does it not add the amount I'd get from both together? and why am i left with the lesser amount?

  • February 12, 2022
  • 1 reply
  • 0 views
I got a new better paying job half way through the year, but when I put in my W2 my refund went from $2,000 something to only $500 something. I dont understand how this makes sense? Am i getting punished for finding a better job!?

1 reply

Employee
February 12, 2022

More income = more tax

 

You started off with your first W-2 and your refund look high?  Then you added another W-2 and it stopped looking so good? That is normal.  When you added more income, your tax liability increased, so you saw your refund decrease.  The program began by giving you your standard deduction—- which lowered your taxable income. So you are not being taxed on as much of the income on that first W-2.  Then you added taxable income--so the refund went down. Your refund (or tax due) is based on the total of your income, not “per W-2.”  Wait until you have entered ALL of your income and deduction information.  You can't really tell anything until it is all entered.  That “refund monitor” does not mean anything until everything has been entered.

 

 

 

https://ttlc.intuit.com/questions/2273878-why-did-my-refund-drop-when-i-entered-another-w-2

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**