Multiple Jobs Tax Preparation,
Without the Stress
Having more than one job can affect your taxes in ways that surprise many people. Each employer typically withholds taxes as though that job is your only source of income. When two paychecks are combined, the total amount withheld may be less than what you actually owe, leaving you with a balance due in April. Multiple jobs can also result in too much Social Security tax being withheld, which may entitle you to a refund. Changing jobs during the year can make the calculation even less clear. Once all your income is reviewed together, these issues are usually straightforward to correct, and future problems can often be avoided by adjusting the withholding for each job.
Located at 12305 Gold Street in West Omaha, our firm helps clients with multiple jobs understand how their combined income affects their tax return. You receive clear pricing before work begins and communicate with the same credentialed professional from start to finish rather than being passed to a seasonal preparer. Your return is handled by a professional who holds the CFP® certification, CFA® charter, and Enrolled Agent credential. We provide timely responses throughout the year, including during tax season. When your return is finished, you receive a recorded video explaining the figures, filing decisions, and final results. Payment is not required until the return is complete and ready to file.
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Some Situations That Might Apply to You If You Have More Than One Job
You have two jobs and owe at tax time
A common surprise for people with two jobs is owing money at tax time, and the cause is usually withholding. Each employer calculates taxes as though its paycheck is your only income, so neither job accounts for what you earn from the other. Combined, the two employers may withhold less than your total income requires. That can leave a balance due at filing, even for someone who expected two regular paychecks to produce a straightforward return. The solution is not a different filing method. It is coordinating the withholding between both jobs so it reflects your full income. We calculate the needed adjustment so the following year is more likely to come out even.
You and your spouse both have jobs
Two-income households can face the same withholding problem as someone working two jobs. Each spouse’s employer withholds taxes based only on that individual salary, while the final tax bill is calculated using both incomes together. Because the combined income may fall into a higher tax bracket than either paycheck reflects, a couple can have taxes withheld all year and still owe when they file, sometimes with an added penalty. This is one of the most common tax surprises for dual-income households. We coordinate both W-4s so each employer accounts for the other income and the same issue is less likely to happen again.
You changed jobs during the year
Changing jobs during the year can leave you with two W-2s and a withholding total that does not line up cleanly. Each employer withheld taxes based on the salary it paid, and a midyear move can result in too much being withheld at one job and too little at the other. A raise with the new position can make the difference larger. There is also a potential issue if you contributed to retirement plans through both employers. Your combined contributions can exceed the annual limit without you realizing it, and the excess must be corrected. We review both W-2s, reconcile the withholding, and identify any additional issues caused by the job change.
We also help with related situations, including college expenses, IRS notice help, and multi-state tax preparation. Or browse every income tax situation we help with.
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