Working two jobs with the same W4 form - now I owe the IRS 5k?

Thanks for explaining! So basically each job was withholding as if I was in a lower tax bracket than I actually am when you combine both incomes? That makes sense but is super frustrating since I had no idea. Would checking the "multiple jobs" box on the W4 have prevented this entirely?

Yes, exactly! Each employer calculates withholding based only on what they pay you. When you have two jobs, neither employer knows about the other income, so they're both withholding at lower rates than your combined income requires. Checking the "multiple jobs" box on your W4 would have helped, but the most accurate approach is completing the multiple jobs worksheet on the W4 form. This calculates the additional withholding needed from each paycheck to cover the taxes on your total income. You could also use the IRS Tax Withholding Estimator online for an even more precise calculation.

Did you need to provide any sensitive info to use this? I'm in a similar boat with 2 jobs and don't want to be hit with a huge bill again next year, but I'm always cautious about sharing financial details online.

How accurate was their calculation compared to what an accountant might do? I'm working two remote jobs and trying to figure out if I should just hire someone or if a tool like this would be sufficient.

You just upload your paystubs with sensitive info blacked out - they only need to see the income and withholding amounts, not your SSN or anything truly private. They even have guidelines showing exactly what you can redact while still getting accurate results. Their calculations were spot-on in my experience. I actually had my accountant verify their recommended withholding amounts, and he was impressed with how accurate it was. He said it was exactly what he would have calculated, but the tool did it in minutes instead of me paying for an hour of his time. The step-by-step W4 instructions were super helpful too - much clearer than what I got from my accountant last year.

Wait, how does this even work? The IRS phone system is so broken I don't see how any service could get through faster than just waiting on hold yourself.

Sounds sketchy tbh. Why would I pay for something when I can just wait on hold for free? The IRS will pick up eventually.

It uses some kind of automated system that navigates the IRS phone trees and waits on hold for you. When they reach a human agent, you get a call connecting you directly. It basically does the waiting part for you so you can keep working or doing whatever else instead of being stuck listening to hold music for hours. The average hold time with the IRS right now is over 2 hours if you even get through at all. I tried for 3 days straight using the "best times to call" from online guides and still couldn't get through. With this, I was talking to an actual IRS agent in 20 minutes while I was working on other things. Worth every penny to me when I was stressing about setting up a payment plan before the deadline.

Thank you! I've already updated both my W4 forms for this year, but I'll definitely use that calculator to double-check everything. Is it normal to owe this much though? I'm still shocked at how big the difference was.

Yes, unfortunately the amount you owe is pretty typical for this situation. When you add a second job with similar income, you're essentially doubling your income but your withholding isn't doubling the tax paid because each employer is calculating withholding based on their portion only. For example, if you make $80K at one job, you might be withheld at an effective rate of about 12-15%. But when your total income is $160K, portions of that income are taxed at 22% or 24% brackets. That difference between what was withheld (at lower rates) and what you actually owe (at higher rates) is where that $5K+ bill comes from.

This is good advice. Also, make sure you're taking the standard deduction at a minimum ($12,950 for single filers for 2022). And if you made any charitable contributions or had work-related expenses that weren't reimbursed, those might help too.

Thanks for bringing this up! I do have some student loan interest from when payments were still required, and I contributed to my 401k at both jobs. I'll definitely look into those deductions. Do you think it could significantly reduce what I owe?