Multiple w2

[MafiaRabbit]

Hi there.

I just have a question about filing, for example two w-2s.

Last year, my fiancee, who worked in the food industry, had two jobs, one he'd held for the majority of the year, and one he held for the remainder. During tax time, he filed his taxes electronically using both w-2s... but we noticed one thing. If he had filed using only one w-2, instead of both, his return would've been much higher. We have no children or dependents, just single filers. Why would his tax return be reduced by filing two w-2s?

And also, I have them withold extra from my paychecks every week, and during a time this year, I held another job. Will filing with two w-2s reduce my tax refund?

[Jiggers]

All income is to be reported

Hi there.

I just have a question about filing, for example two w-2s.

Last year, my fiancee, who worked in the food industry, had two jobs, one he'd held for the majority of the year, and one he held for the remainder. During tax time, he filed his taxes electronically using both w-2s... but we noticed one thing. If he had filed using only one w-2, instead of both, his return would've been much higher. We have no children or dependents, just single filers. Why would his tax return be reduced by filing two w-2s?

And also, I have them withold extra from my paychecks every week, and during a time this year, I held another job. Will filing with two w-2s reduce my tax refund?

You MUST report all of your income. If he or you received 2 W-2's, then you must report both on your return.

[Black Bart]

Hi,

Hi there...I just have a question about filing, for example two w-2s...

Interesting question, but not nearly so interesting as the name. If it's not being too personal, can I ask what a mafia rabbit is? Is it somebody who goes and gets stuff for gang members? To avoid being "whacked" I'm gonna avoid the usual mob jokes (offers not refused, etc.) and just concentrate on the question.

Last year, my fiancee, who worked in the food industry, had two jobs, one he'd held for the majority of the year, and one he held for the remainder.

I can relate to your situation -- when we first got married back in the sixties, my wife also had two jobs. She worked in the food industry (waitin' tables at her cousin's cafe/gas station) and another one in the apparel industry (stitchin' up pants in the blue jeans factory--Crotch and Loop division). Not to be outdone, I took a position in the petroleum industry (pumpin' gas at cuz's fillin' station); but it didn't last -- I got the axe for insubordination (demanded to be paid in cash instead of recycled non-detergent motor oil). Well, enough'a that and on to your problem...

During tax time, he filed his taxes electronically using both w-2s... but we noticed one thing. If he had filed using only one w-2, instead of both, his return would've been much higher. We have no children or dependents, just single filers. Why would his tax return be reduced by filing two w-2s?

It's hard to make general statements about these things without actually seeing the W-2 forms, but it could be one or more of these things:

(1) Maybe the second form didn't have any federal income tax held out (look at box #2 on the W-2 and see). That's supposed to be withheld, but employers don't always do it and sometimes will only hold social security and medicare tax (boxes 4 and 6). So, income tax would be due on the second W-2 income, but no tax withheld weekly would mean it has to be paid when you file your taxes.

(2) If the weekly (or whatever) earnings on one of the jobs was low, then the tax withholding charts will show that little or no income tax should be held out because it assumes that's all the money you're gonna make during the year and without the other job you wouldn't owe any tax. For wages under $115 the tax withheld is zero and at $200 it's only nine bucks. So, again, you'd have more taxable income at year's end since nothing much was paid weekly.

(3) Another possibility is Earned Income Credit (EIC). This is "free" money that the government gives you and single people are eligible for it to a limited extent. Using only one of your W-2 forms, you might have qualified for the maximum of $412, but when you earn over $6,750 total, then EIC begins to decrease -- at $9,000 it's $237, at $10,000 it's $160, at $12,100 it's zero. So maybe you got some EIC using only the first W-2, but the income from the second one wiped it out.

(4) That's all I can think of right off; but I'm not sure any of the above will help as I've got an idea y'all aren't from "pore folks" territory and if not, then most of the above wouldn't apply to you. If so, maybe somebody else here has some fresh ideas and can put in their two cents worth. Good luck.

And also, I have them withold extra from my paychecks every week, and during a time this year, I held another job. Will filing with two w-2s reduce my tax refund?

Well, as the first guy said; you don't have a choice. You have to file on both of them. Sometimes people do leave one off their return to jack up their refund, but IRS has a pretty good "matching" program and will catch it sooner or later and send you a bill for the overpayment or underpayment plus penalty and interest. The number of W-2s you file has no effect; it's just the amount of total earnings on all of them that matters.

[Bees Knees]

You MUST report all of your income. If he or you received 2 W-2's, then you must report both on your return.

An obvious answer, but the question illustrates a common misconception. I don't think the poster was trying to evade tax. The poster, like many other non-professionals, think all W-2s will generate a refund, due to over withholding.

If I get a $1,000 refund when I file with one W-2, logically then, I should get a $2,000 refund when I file two W-2s.

So the poster is asking why, instead of getting that $2,000 refund, I only get $500 when I file two W-2s?

Good answer BB.

[Black Bart]

Many thanks, Your Kneeship,

Good answer BB.

A compliment from management is always welcome and I do appreciate it.

And I want to take this opportunity to advise you that I'm much upset with the scoundrel (obviously an imposter) back there in my "Ghost of Competence Past" thread who, while posing as Black Bart, most unfortunately and unjustly referred to you as a "wet blanket." I assure you that, like O.J., I will do my best to bring the "real" smart aleck to justice.

[JohnH]

The number of W-2's

Or, stated another way:

Your refund isn't determined by the NUMBER OF W-2' forms; it's the NUMBERS ON the W-2's that matter.

[ED SMITH]

This is a common problem...

for taxpayers with multiple W-2's. The problem arises because the tax withholding is prorated over an assumed yearly income. A second W-2 may be low enough to only generate a small, or even 0, withholding, but the income is added to the first and and the additional income is taxed at the marginal rate.

It has to be explained to the client, that it is the Total income and the Total withheld that will determine the final outcome.

I have had clients with 3, 4 ,5 up to 12 W-2's, and yes, the more they have the more they seem to owe.

[Bees Knees]

And I want to take this opportunity to advise you that I'm much upset with the scoundrel (obviously an imposter) back there in my "Ghost of Competence Past" thread who, while posing as Black Bart, most unfortunately and unjustly referred to you as a "wet blanket." I assure you that, like O.J., I will do my best to bring the "real" smart aleck to justice.

Sorry, I didn’t know “wet blanket” was meant as an insult. I’m from up north.

I’m still chuckling at a phrase used on “Lonesome Dove,” the eight hour TV mini-series they played on one of our local channels over the weekend.

The guy from Texas insulted one of the cowboys by calling him a “Derned Pup.”