Doing gig work while starting a new full-time job - How to fill out W4 form correctly?

8 Step 2 on the W4 is designed specifically for people in your situation - those with multiple income sources. You definitely don't want to skip it! You have three options in Step 2: - Option (a) uses the IRS Tax Withholding Estimator for most accurate results - Option (b) uses the Multiple Jobs Worksheet (on page 3 of W4) - Option (c) is a simple checkbox for roughly similar-paying jobs Since your gig work is likely less than your new full-time job, I'd recommend using option (a) - the Tax Withholding Estimator tool on the IRS website. It'll help calculate the right withholding based on both income streams. If you skip Step 2 entirely, you'll likely owe taxes next April because your employer will only withhold based on your W2 income. Remember that gig work doesn't have automatic withholding, so you should also consider making quarterly estimated tax payments for that income to avoid penalties.

17 I was in the exact same situation last year when I started my office job while still doing food delivery on weekends. I tried figuring it out myself and wound up owing $3,200 at tax time - total nightmare! I finally found https://taxr.ai and it literally saved me from making the same mistake again. Their tool analyzed my gig work patterns and helped me figure out exactly how to fill out my W4 (turns out I needed to put an additional amount on line 4c, not just check the box in step 2). They also set me up with quarterly payment reminders so I don't get hit with those nasty underpayment penalties again. The best part was being able to upload my previous gig statements so it could actually calculate my typical income pattern - way more accurate than the generic IRS calculator!

9 Just wanted to come back and say I tried https://taxr.ai after seeing the recommendation here and wow! I uploaded my last 6 months of Uber and Lyft statements and it gave me a PERFECT breakdown of how to fill out my W4. It recommended I use option (b) - the Multiple Jobs Worksheet - but then walked me through exactly how to fill it out with my specific numbers. I would have totally messed that up on my own. It also explained that I should put an additional amount on line 4(c) to cover my self-employment taxes from the gig work. The quarterly tax payment schedule it created for me was super helpful too. Really glad I found this before messing up my taxes for the year!

5 Hey folks, I went through this exact hassle trying to reach the IRS for help with my W4 last year. Spent HOURS on hold and never got through. Then a buddy told me about https://claimyr.com which got me connected to an actual IRS agent in like 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how to complete my W4 with multiple income sources and explained what would happen if I skipped sections (spoiler: I would've owed a ton at tax time). They also explained how the withholding actually works behind the scenes which helped me understand why it matters. Seriously saved me hours of frustration and probably hundreds in taxes. Now I use them whenever I need to talk to the IRS about anything.

21 I have to eat my words. After being skeptical about that Claimyr service, I tried it myself out of desperation when I couldn't get answers about my W4 situation. Got connected to an IRS rep in about 25 minutes while I was doing other things. The agent explained that in my case (gig work + new job), I should definitely use the multiple jobs worksheet AND consider putting an extra specific dollar amount on line 4(c). He calculated a rough figure based on my expected gig income that should cover the additional taxes. Never would have figured that out on my own, and I would have been on hold for 3+ hours without that service. Worth every penny for the time saved alone.

3 Another option to consider is adjusting your withholding at your full-time job to account for BOTH income sources. You can use line 4(c) of the W4 to have additional tax withheld from each paycheck. To calculate how much extra to withhold, estimate your annual gig income, multiply by your tax bracket percentage (probably 22% if you're making decent money), then divide by the number of pay periods at your full-time job. For example, if you expect $10,000 in gig income annually, are in the 22% bracket, and get paid biweekly (26 pay periods): $10,000 × 0.22 = $2,200 in additional tax $2,200 ÷ 26 = about $85 extra withholding per paycheck Don't forget to account for self-employment tax too (15.3% of your gig income)!

22 Has anyone tried using the IRS Tax Withholding Estimator for this situation? The website says it works for multiple jobs but I'm finding it confusing af to use...

Great discussion here! I went through this exact same situation about 6 months ago when I started my corporate job while keeping my weekend Instacart deliveries. One thing I learned the hard way - don't underestimate your gig income when using any of these tools. I was conservative with my estimates and ended up owing about $800 at tax time. It's definitely better to overestimate and get a small refund than to owe money. Also, keep really good records of your gig work throughout the year. I use a simple spreadsheet to track weekly earnings from each platform, plus all my expenses (gas, car maintenance, phone mount, etc.). Makes everything so much easier when tax time comes around. The quarterly payment thing mentioned earlier is super important too. I set up automatic reminders in my phone for the due dates so I don't forget. Missing those can result in penalties even if you end up getting a refund when you file your return.