filing taxes with multiple jobs

3 Tax Considerations for Those with Multiple Jobs

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If you didn’t already know by now, Chris Peach is the guy who started Money Peach from his kitchen table in March 2015. He started Money Peach alongside his “real” job, because isn’t that how most small businesses start off? They usually are created alongside a “real” job.

Believe it or not, Peach’s real job is on a firetruck at one of the busiest fire houses in the city he serves. If you weren’t already aware, Chris is a full-time firefighter and paramedic. He is also a part-time full-time blogger/entrepreneur for Money Peach!

He is a problem solver whether you’re house is on fire, you’re having a heart attack, or you’re needing advice on what debt to pay off first 🙂

Just like many of you, Peach wears more than one hat for work!



Related: The Top 68 Side Hustles to Add More Money to Your Life


Working More than One Job?

If you are one of the many people like Chris and myself who are thinking about, or already supplement your income by having more than one job, this post is going to provide you with some key takeaways for making sure your taxes are in check!

Working more than one job is tough. No, actually it is RIDICULOUSLY HARD.  It requires a ton of sacrifice and self-motivation to tell yourself to keep going, even when you are dead tired. The icing on the cake is when you’re drinking your 4th cup of coffee to keep yourself going and you scroll through your Facebook feed and see those around you are taking time off to relax. Not cool!



Money Peach Pro Tip

I use the Facebook Newsfeed Eradicator. It replaces your news feed inside Facebook with a blank screen and different motivational quote every time you login. You can see a screenshot and add the extension to your Chrome Browser by clicking button below.



However, before you go out and earn a bunch of income from your multiple job sources, you should first realize there are some special tax considerations for those with multiple jobs.

Here are 3 things you need to consider if you have multiple jobs. Even if you’ve already done your taxes for this year, these may come in handy come tax time next spring.



1. Multiple Tax Withhold Forms May Result in Too Few Withholdings

While you may not enjoy paying taxes and taking home a smaller paycheck, you do want to be sure they have been prepared correctly and withheld from your paychecks all year so you don’t owe a crazy amount of money come next April.

If you have multiple jobs, a separate withholding form must be filled out for each employer, and neither of those forms takes into account what is withheld from the other employer. Once your taxes are calculated, you might find that you owe a substantial amount in income tax for the year as a result.

How Do You Avoid Owing Too Much and File an Accurate Return?

The answer is to simply change your withholding on a new W-4 Form with your employer.


Download a New W-4 Form for the IRS here

**I recommend you have this near by when reading this post



**Two important things to remember when looking at your W-4:

  • Claim all the allowances you normally would on the W-4 form for the job that pays you the most.
  • Claim Zero on all W-4s for other employers.


Why does this work?

Claiming more allowances results in less being withheld from your paycheck for that employer.

On the other hand, claiming zero would result in the maximum being withheld from your paycheck for that employer.

Therefore, since you are claiming zero for every employer except the place where you earn the most, you shouldn’t have a huge tax burden at the end of the year.



Peach Tip


I don’t want you to get a tax refund.

A tax refund is pretty dumb when you break it down. A lot of people will look at it as a forced savings plan, however what it really means is you’re lending your hard-earned money throughout the year to the government at 0% interest.

After you have sent them your money, you then patiently sit and wait while they pay you back sometime next Spring. No thanks government.

This is why I would much rather have the money I earned throughout the year land inside each paycheck, and then owe the government a little (not a lot) come April. At least then I know I was 100% efficient with my money.

Related: Why Getting a Tax Refund is Called Losing




2. Two Earners/Multiple Jobs Worksheet

The second page of the IRS Form W-4 contains a Two-Earners/Multiple Jobs Worksheet.

You may need to fill out this portion of the form if you have multiple jobs or are married and both you and your spouse work.

The intent here is to ensure enough taxes are withheld from your paycheck to prevent you from owing a large payment to the IRS once your taxes are calculated. There is an income chart at the bottom of the worksheet to help you fill out the form.

Since you can’t claim less than zero, an additional dollar amount can be withheld from each paycheck of the employer of your choice.

The goal is to be as close as possible to the amount actually withheld and the amount you actually owe in taxes at the end of the year. This will result in having to write a much smaller check to the IRS when you to file your next tax return.


3. Social Security Tax

If you have multiple jobs, you need to be cautious in order to avoid an overpayment on your social security tax.

According to the Internal Revenue Service, for tax year 2016, the social security tax income limit is $118,500. If you hit that mark with your total combined income, you won’t need to pay any more social security tax for the year.

If you have gone over the limit and the amount withheld was over $7,347 for employees ($14,694 for self-employed) which is the maximum amount to be withheld for 2016, an adjustment must be made. This is done on line 71 of your 1040 form. Talk to your tax professional if you have any concerns about this.

The Bottom Line

With over 70,000 pages in the tax code, it is going to be impossible to get your taxes “just right”. Right when you think you have it all figured out, they add one more page to the tax code and boom, your taxes are no longer perfect!

Just remember this: The best you can do is simply the best you can do when it comes to paying Uncle Sam.

Therefore, if you’re one of those hard-working rockstars who dives in and takes on multiple jobs with multiple employers, then bookmark this article so you have the valuable information you’ll need to help you with your next tax return.


The #1 Trait of Successful People is they are Proactive.

The Best Way to be Proactive is to be on a Monthly Budget.


What Do You Think?

Can you think of other tax considerations for those with multiple jobs? If so, leave me a comment below and share this info with the people you like, love, can’t stand, or are somewhere in between via the buttons below:

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As always, thanks for being part of Money Peach,

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17 replies
  1. Daniel
    Daniel says:

    Tax overpayment (or underpayment) can be a fine line. Mine is an unavoidable overpayment as I generally get the last 2 paychecks of the year without SS payments. So of course all of the taxes I paid to SS on my “side” job (Officer in the Army National Guard… which is why I put quotes since it sucks up so much time) get credited on my tax return. I know, nice situation to be but it generally leads to a refund every year and is unavoidable (pretty much impossible to convince the US Government to not force someone to pay taxes). Multiple jobs do lead to a more complicated tax form though.

    • Kayla Sloan
      Kayla Sloan says:

      I agree! It can be very difficult, if not impossible, to get things right and end up at $0 come tax time. But I always try my best because I don’t want to owe a lot of money all at once and I don’t want to get a large refund either.

  2. Dianna Haywood'Chafee
    Dianna Haywood'Chafee says:

    I work two full-time jobs I claim 0 they take out the maximum taxes on both jobs so why is it at the end of the year I end up Owen 800 700 every year and I have extra money being taken out on my main job to help with my taxes

    • Kayla Sloan
      Kayla Sloan says:

      I’m not an accountant by any means and I don’t know all about your situation with deductions, etc. BUT, you could have them take out extra besides just claiming 0 but putting in a dollar figure you want withheld on top of the regular withholdings. It’s best to talk to an accountant before making that change though.

  3. Michelle Lee
    Michelle Lee says:

    I work 2 part time jobs and my husband works full time..I just did my taxes and owe the IRS 1,100…Not happy..We both claim 0 and i take extra out of my lower paying job.What are we doing wrong?? They take the max out and we still have to pay that much back..Im not getting what we are doing wrong… Any help would be appreciated 😉

    • Kayla Sloan
      Kayla Sloan says:

      As I just told Dianna, I’m not an accountant. BUT, you could have them take out even more so you don’t have to pay in. Don’t forget to have extra withheld on the state side if you always have to pay in there too. It’s best to talk to an accountant before making those changes though.

  4. Brooke
    Brooke says:

    I have 3 jobs.
    Two serving jobs in Texas and I am an online instructor for WVU. I owed the state of Texas 3700 bucks last year and I barely make over 50k. What am I doing?? I claim 0 at the job I make the most money at.

    • Chris Peach
      Chris Peach says:

      Without seeing your deductions and credits, it’s hard to know for sure. Did you ask your tax professional if you can adjust your withholding to have them take out even more per pay period? You may also want to pay quarterly taxes if you are working a job that doesn’t withhold anything.

    • Chris Peach
      Chris Peach says:

      You’ll need to double check with a tax professional, but if you claim 1 at both jobs, you may not have enough tax withheld and could end up owing money at the end of the year.

  5. Siarra Adams
    Siarra Adams says:

    I work two jobs one is a full-time job and one is a part time job which job should I claim 1 on the job that I make the most at or the job that I make the Least at? right now I claim 0 for both jobs and I’ve been thinking about claiming 0 for one job and claiming 1 for the other I’m single but should I claim 1 on the job that I make the most at or should I claim one at the job that I make the least at? Please help! Thank u!

  6. Sharon
    Sharon says:

    So i am currently holding 2 jobs, 1 ft, 1 pt. My husband also holds 1 ft job. We have 4 dependants and we don’t exceed 50,000 a year. I am confused as to what we should be claiming? My 1 ft job makes the most money so do i claim all 4 and then 0 on my 2nd job and 0 at my husbands job? Or can I claim 0 at my pt job and 2 at my higher paying job and my husband the other 2? I am so freaking confused.. help

    • Chris Peach
      Chris Peach says:

      Hi Sharon, I would talk with a tax expert to make sure you are doing it 100% correctly. I’m not a tax professional and I wouldn’t want to give you incorrect information about your withholdings. Since you and your husband are both working, and you have a PT job, that could affect your withholding status quite a bit.

  7. Ben
    Ben says:

    I live in the state of MN, and am considering taking on a part-time waiting gig. What are the potential tax consequences of doing so? I already claim 0 at my full-time job, and would also at the part-time gig, but what are the rules for reporting tips, and how do they fold into your income?


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