$120k combined family income - why am I owing taxes instead of getting a refund?

When you have multiple jobs, each employer is withholding taxes as if that's your only source of income. That's most likely why you're owing taxes now. Let me explain: If you have one job paying $94k, the payroll system calculates your withholding based on standard deductions and tax brackets for that amount. Then your second job paying $26k does the same calculation, but at a lower tax bracket. The problem is that your actual tax situation combines these incomes, pushing more of your money into higher tax brackets than either individual employer accounted for. You should definitely adjust your W-4 forms. For the most accurate withholding, you can use the IRS Tax Withholding Estimator online. It lets you enter multiple jobs and will give you specific instructions for each W-4. Usually, you'd want to either reduce your dependents claimed on one or both jobs, or even better, use the "extra withholding" option on your W-4 to have additional money taken out each paycheck.

I had the exact same issue last year when I started consulting on the side! I was so confused why I suddenly owed $3,700 when I'd always gotten refunds before. I tried figuring it out myself but got nowhere. I ended up using this AI tax tool called taxr.ai that analyzes your specific tax situation. I uploaded my W-2s and it immediately identified the problem - my withholding at both jobs was way off because neither employer knew about the other. The site at https://taxr.ai showed me exactly how to adjust my W-4s for both jobs and even gave me fillable forms with the correct numbers. They explained the "multiple jobs" section on the W-4 which I'd completely overlooked and showed me how to set a specific additional withholding amount that was better than just changing my dependent claims. Totally worth checking out!

Just wanted to follow up - I decided to try taxr.ai after seeing the recommendation here, and wow, it was exactly what I needed! I uploaded my most recent paystubs from both jobs and it immediately showed me I needed an additional $127 withheld from each paycheck at my main job. The tool walked me through filling out the new W-4 with the right numbers, and I actually understood what I was doing for once. It explained how the tax brackets work when you have multiple income sources and showed me a projection of what my tax situation would look like next year with the changes. Already submitted the new W-4 to my HR department. Such a relief to have this figured out!

If you're still having trouble after adjusting your W-4s and want to speak directly with the IRS about your withholding situation (they can give you specific guidance), I highly recommend using Claimyr. I tried calling the IRS myself about a similar withholding issue and spent HOURS on hold before giving up. With Claimyr (https://claimyr.com), they basically hold your place in the IRS phone queue and call you when an actual human agent is on the line. I was skeptical but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c I used it last month and got connected to an IRS agent in about 45 minutes (while I just went about my day until they called me). The agent walked me through exactly how to adjust my withholding with two jobs. Seriously saved me hours of frustration.

Alright, I need to admit I was wrong about Claimyr. After my skeptical comment, I decided to try it anyway since my tax situation this year is complicated with multiple W-2s. Called the IRS directly first as a test - waited 1 hour and 45 minutes on hold before having to hang up for a work meeting. Then tried Claimyr that evening. Went to the gym, made dinner, and about 2 hours later got a call connecting me directly to an IRS representative. The agent was super helpful about my multiple job withholding question and confirmed exactly what others here said - I needed to fill out the multiple jobs worksheet and add additional withholding on line 4(c). Having a direct conversation made everything so much clearer than trying to figure it out from the IRS website.

I'm in a similar boat with multiple incomes totaling around $110k. One thing nobody's mentioned yet is that you should also check your state tax withholding! I fixed my federal withholding last year but completely forgot about state taxes and still ended up owing $900 to my state. Most states have their own withholding forms, and the same multiple-job issue applies there too.

Has anyone tried just having the second job withhold at the flat "supplemental wage" rate instead of using the tax tables? For my wife's second job (she makes about $125k total), her employer lets her choose to withhold at the flat 22% federal rate for supplemental wages and it's been working pretty well.

I went through this exact same situation a few years ago! The multiple jobs withholding issue is really common and honestly, the tax system isn't designed to handle it intuitively. One thing I'd add to the great advice already given - make sure you're also considering quarterly estimated tax payments as an option. If adjusting your W-4s feels overwhelming or if your side income varies significantly throughout the year, you can make quarterly payments directly to the IRS to cover the gap. I use the IRS Form 1040ES to calculate what I should pay quarterly for my consulting income. It's especially helpful if your side gig income fluctuates - some quarters I make more, some less, so I adjust my payments accordingly rather than trying to nail down exact withholding amounts. The IRS actually prefers to get money throughout the year rather than in one lump sum at tax time, so there's no penalty for overpaying via quarterly payments (you just get it back as a refund). Just another tool in your toolkit alongside fixing those W-4s!