Quote:
Originally Posted by sleepydsm
This is my first year with two jobs at the same time, I have heard it may "hurt" the return I would get. Anyone have any real knowledge about this?
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Working more than one job will not directly hurt your return. Withholding choises are what matter.
Say one person works 2 jobs. Each employer will probably withhold a lower amount (say 15% tax bracket each job). Then, lets say by the end of the year, the individual's total income exceeds the 15% tax bracket and they are in the 25%. They owe 25% tax on certain wages which they only withheld 15% and a greater tax liability (or less of a refund) can happen.
If one is on salary for an income in the 25% tax bracket, they will typically withhold more money (to cover the $25% tax) and it will seem like a normal year.
Having two jobs isn't the problem though. This can be planned for and avoided with some tax planning.
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