Filing Taxes When You Have More Than One Job 

1. Report All Income

When you have multiple jobs, you need to report all of your income on your tax return. This includes wages from each employer, as well as any additional income such as freelance or gig work. Each employer will send you a W-2 form (for regular employment) or 1099 forms (for contract work), and you’ll use these to fill out your tax return.

2. Understand Your Tax Withholding

Each job will likely withhold taxes based on the income you earn from that employer. However, the IRS doesn’t know about your other jobs when it calculates the withholding. This means:

• Job 1 (higher-paying job): The withholding might be accurate or close to what you owe in taxes.

• Job 2 (lower-paying job): The withholding may be insufficient because it’s based only on the earnings from that job.

To avoid underpayment, consider adjusting your withholding on one or more of your jobs by submitting a new W-4 form to your employers. You can increase the amount withheld to make up for the extra income from your other job(s).

3. Paying Self-Employment Taxes

If you have a side hustle, gig work, or freelance income, you may need to pay self-employment taxes. This includes Social Security and Medicare taxes, which are typically split between you and your employer. When you’re self-employed, you’re responsible for both parts, which is an additional 15.3% of your net income.

To cover this, you might need to make estimated tax payments throughout the year to avoid penalties.

4. Claiming Deductions

Having multiple jobs doesn’t change the deductions you’re eligible for. You can still claim things like:

• Standard or itemized deductions

• Retirement contributions (IRA, 401(k))

• Health savings account (HSA) contributions

Make sure you’re taking full advantage of any deductions or credits that apply to your situation.

5. Filling Out Your Tax Return

When it comes time to file, you’ll need to combine all of your income from all of your jobs. This will be reflected on your tax return, typically on Form 1040. You’ll add up all the income reported on your W-2s and 1099 forms and subtract any allowable deductions.

6. Potential for Owing Taxes

Since your employers withhold taxes based on the assumption that you only have one job, having multiple sources of income can lead to owing taxes when you file your return. If not enough was withheld, you could face a tax bill when you file.

7. Avoiding Surprises: Use a Tax Withholding Calculator

To avoid surprises come tax time, you can use the IRS’s Tax Withholding Estimator to see if you need to adjust your withholding or make additional estimated tax payments. This tool helps you estimate your tax situation and gives you the option to fine-tune your withholding amounts.

8. State Taxes

Don’t forget to check your state’s tax rules. Many states tax all of your income, including income from multiple jobs, so make sure you’re following the state guidelines for withholding.

Final Thoughts

Filing taxes when you have more than one job doesn’t have to be overwhelming, but it does require attention to detail. The key is to track all your income, make sure enough taxes are being withheld, and adjust your withholding if necessary. By staying organized and planning ahead, you can avoid surprises and make tax season easier.