Why did my refund drop when I entered a second W-2? (2024)

FAQs

Why did my refund drop when I entered a second W-2? ›

When you enter a second W-2, you add more income. Generally, more income means more taxes. Your new total income might be in a higher tax bracket. Your second W-2 could have pushed your total income into a higher tax bracket, making it taxed at a higher marginal rate.

Having multiple W-2s affects your tax return in the sense that you'll have more information to enter when it's time to file. More income to report could also mean paying more taxes if you end up in a higher tax bracket.

All or part of your refund may be offset to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans.

If you owe money to a federal or state agency, the federal government may use part or all of your federal tax refund to repay the debt. This is called a tax refund offset. If your tax refund is lower than you calculated, it may be due to a tax refund offset for an unpaid debt such as child support.

This is because of the graduated nature of the tax rates, which applies higher tax rates to higher income rates. This is how the marriage penalty might get you: when you combine incomes on a joint return, some of that income can push you into a higher tax bracket than if you were filing as the Single filing status.

If a second tax return is submitted under the same social security number, the subsequent return will be flagged by the IRS's automated system, the return will be rejected, and an explanation and error code will be sent to you.

When you have a second job, this extra income may bump you up to a higher tax bracket. For example, if a single, unmarried individual made $80,000 in 2022 from their primary job and $10,000 in 2022 from a part-time job, the gross income reported on their federal taxes would be $90,000.

BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund once your refund date has passed.

What do I do if my refund was less than expected? ›

Refund less than expected

If you receive a refund for a smaller amount than you expected, you may cash the check. You'll get a notice explaining the difference. Follow the instructions on the notice. If it's determined that you should have received more, you will later receive a check for the difference.

Filing Fees Deducted from Refund

If you elected to have the filing fees deducted from your refund rather than paying by debit or credit card, your refund amount will be reduced by the filing fees.

If you are under a court order to pay child support, it's important to understand that non-payment automatically triggers several enforcement actions, including the seizure of tax return payments.

What happens if I already filed my taxes and got another W2? If you forget to include a W-2 when you file your taxes, the IRS will catch it and send you a bill for the taxes you owe. You may also be subject to penalties and interest charges.

Most couples find that filing jointly makes sense financially. The tax code is written to benefit married couples and families, and this status is the one that maximizes those generous tax breaks.

Filing without one of your W-2's can lead to inaccurate reporting of your income and taxes, which may result in penalties from the IRS.

When you enter a second W-2, you add more income. Generally, more income means more taxes. Your new total income might be in a higher tax bracket. Your second W-2 could have pushed your total income into a higher tax bracket, making it taxed at a higher marginal rate.

Enter your first W-2. After your first W-2 is entered, it will be displayed on the Your Wages (Form W-2) screen. On that screen, you'll be asked if you need to enter any more W-2s for wages and salaries. Click Add a W-2, and you can enter another W-2.

Because most taxpayers only need W-2s and 1099s to prepare their returns, all of which must be mailed by the end of January, you usually don't need to wait to file your tax return. If you find out you received a revised 1099 Form after filing and the change was major, you may need to file an amended return.

“You will need to file an amended Form amended Form W-3 (which is the total of all your W-2s), and possibly amended 941s (quarterly wage reports), since the numbers on all three forms should all match – to the penny.”