LPT: If you get a second job, you might need to adjust your tax withholding. Otherwise you'll probably owe a lot at the end of the year.

Submitted by weluckyfew t3_11cn9gb in LifeProTips

Any job you have deducts taxes based on your estimated yearly income for that job. If you have a second job that pays you, say, $400 a week then it will tax you as if your total income is $400 a week, so you'll be in a low tax bracket - in this case 10%-12%. But if your primary job pays, say, $1,000 a week then that second job should be taxed at 22% (because your first $40,000ish from your primary job is taxed at 10%-12% but anything over that is taxed at 22%)

I have two restaurant jobs - I have the second job take out another $50 a week in taxes because I don't want to owe at the end of the year.

EDIT: Thanks to u/ItsAllJustMalarkey for this: you can resubmit a new W-4 to your HR/payroll anytime. You can change your withholding parameters as many times as you want.

And if you change your address, you should resubmit this form with your new address. This is what determines where your w-2 is sent to in January.

87

Comments

You must log in or register to comment.

keepthetips t1_ja3w591 wrote

Hello and welcome to r/LifeProTips!

Please help us decide if this post is a good fit for the subreddit by up or downvoting this comment.

If you think that this is great advice to improve your life, please upvote. If you think this doesn't help you in any way, please downvote. If you don't care, leave it for the others to decide.

1

empteevessel t1_ja3z3ih wrote

This is helpful. My part time job was off the books since I started almost two years ago but now they’re putting everyone on as W2 next month. Should I just change the withholding from 1 to 2 for federal and state? Or is it better to have a specific amount extra taken out per check like you do? I’ve never had a part time job on the books while also working a full time job with normal payroll taxes.

13

ItsAllJustMalarkey t1_ja413e5 wrote

This is what the worksheet on your W-4 is for.

You should add to your post that you can resubmit a new W-4 to your HR/payroll anytime. You can change your withholding parameters as many times as you want.

And if you change your address, you should resubmit this form with your new address. This is what determines where your w-2 is sent to in January.

5

weluckyfew OP t1_ja41860 wrote

Replying to empteevessel (#2,029,559)

IIRC changing the withholding to two would actually get less taken out in taxes - it would assume you have a dependent to claim on your taxes.

I just go with a set amount. I think if your income is fairly stable from that job you can just double whatever is being withheld now for federal taxes. But maybe someone who knows better will comment with a more foolproof way to do it.

2

ItsAllJustMalarkey t1_ja420qz wrote

Replying to empteevessel (#2,029,559)

The W-4 system has changed. The “0, 1, or 2” system is no longer how its done. This changed in either 2019 or 2020.

Download the 2023 W-4 form and read through it. You’re now required to indicate the actual dollar amount you want withheld, and luckily there is a super confusing worksheet you can use.

Its so confusing that most people I onboard just leave it blank and sort things out at the end of the year when they file.

4

ItsAllJustMalarkey t1_ja42b9v wrote

Replying to weluckyfew (#2,029,953)

FYI, the “0” “1” “2” system is outdated. They changed the forms in either 2019 or 2020. If your employer is still using the old form then it might not be translating properly when they do payroll.

Download the 2023 W-4 form. It has 3 pages of confusing AF instructions.

4

ItsAllJustMalarkey t1_ja43kkq wrote

Replying to empteevessel (#2,030,261)

Just our government making things unnecessarily complicated. We all had the old system down… so of course they had to shake it up.

HR isnt legally allowed to help you fill out the form either. I always tell people to just put whatever, or leave it blank if they want. And then give them an extra form to take home, and bring to their CPA. You can resubmit a new one and negate the old one whenever you want.

3

weluckyfew OP t1_ja45t8g wrote

Replying to ItsAllJustMalarkey (#2,030,145)

Good to know - I just have the extra money taken out and treat it like a forced savings account. Sure, it doesn't get interest, but then again at most I'm only overpaying by a few hundred bucks so it wouldn't get me much anyway.

1

prplginyu t1_ja5hgd6 wrote

i appreciate all these tax posts

2

I_Want_To_Know22 t1_ja5j2o6 wrote

Good tip. I got SCREWED on state taxes one year because of too little withholding.

Now I claim 0/0, plus have an extra $20 taken out per week just to make sure I don't owe, or owe a little as possible. Even when I've only worked one job I've done this, because you never know, honestly.

2

WreckTangle12 t1_ja5sjrr wrote

On the flipside, completely forget this for a year after you quit your second job and make bank on your tax return when you do finally remember

-me, this year, got $4k back 😌

4

Songof7 t1_ja5so67 wrote

This also applies if you file jointly and one spouse makes more than the other. Same dynamics.

2

AnythingDonahue94_28 t1_ja6hgdj wrote

Maintaining an awareness of how taxes are calculated based on income and tax brackets is essential, and it's clear from this comment that this individual understands the importance of doing so. They have taken a proactive approach to minimize their tax burden by factoring in the additional income from the second job and proactively setting aside money for taxes. This wise approach could save them a substantial amount of money.

1

WreckTangle12 t1_ja8evk0 wrote

Replying to 44problems (#2,058,176)

They were taxing me too much in 2022 so I just got extra back when I corrected it in December last year and filed as having only one job this year. I didn't do it on purpose lol I completely forgot that I was supposed to change it.

1