Answer
Jun 16, 2018 - 08:30 AM
Assuming that you filed as head of household and you qualify for the earned income credit and/or child tax credit, many online tax filing services will automatically apply your standard deduction and personal exemption, which in turn will show you an artificially high refund after entering your first W-2. For example, let's say that after entering your first W-2, you expect to receive $4000 on your tax return.
As you continue to enter additional income or a (second W-2) your refund will likely decrease, sometimes quite dramatically. This is mainly due to the fact that the IRS sees your income as doubled and a higher income will put you in a higher tax bracket. It's very disheartening to see your hard earned money go from a possible $4000 tax return, down to a measly $1500 tax return especially when you have a family to support and bills to pay. If you're filing single (not married) the effects of entering two separate w-2's can be downright devastating as your return will be even smaller (usually a few hundred dollars) to nothing at all.
Hence, there are some benefits to having a partner/spouse or children. I remember filing single and working two jobs back in 2017. I entered the first w-2 and I was excited about the fact that I was looking to receive a $480 return. But once I entered the second w-2, all of my hopes were dashed when I looked at the screen and saw a different amount of $157 and some odd change displayed. Many tax experts (both online and offline) will tell you that this is common and nothing to be concerned about as you politely smile through your teeth, but I can tell you first hand, that it's not a pleasant feeling when you're expecting some extra money to keep your house in order only to have it wiped away for working two or more jobs. I'm always amazed with how the American money system works against hard working people instead for us. I think the financial system needs a major overhaul, but that's just wishful thinking on my part. Good luck!
As you continue to enter additional income or a (second W-2) your refund will likely decrease, sometimes quite dramatically. This is mainly due to the fact that the IRS sees your income as doubled and a higher income will put you in a higher tax bracket. It's very disheartening to see your hard earned money go from a possible $4000 tax return, down to a measly $1500 tax return especially when you have a family to support and bills to pay. If you're filing single (not married) the effects of entering two separate w-2's can be downright devastating as your return will be even smaller (usually a few hundred dollars) to nothing at all.
Hence, there are some benefits to having a partner/spouse or children. I remember filing single and working two jobs back in 2017. I entered the first w-2 and I was excited about the fact that I was looking to receive a $480 return. But once I entered the second w-2, all of my hopes were dashed when I looked at the screen and saw a different amount of $157 and some odd change displayed. Many tax experts (both online and offline) will tell you that this is common and nothing to be concerned about as you politely smile through your teeth, but I can tell you first hand, that it's not a pleasant feeling when you're expecting some extra money to keep your house in order only to have it wiped away for working two or more jobs. I'm always amazed with how the American money system works against hard working people instead for us. I think the financial system needs a major overhaul, but that's just wishful thinking on my part. Good luck!
Add New Comment