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Originally Posted by GoinAllTheWay
What kind of impact does this have on your taxes? I remember doing this in my 20's and seems like I would always owe quite a bit at tax time which put quite a dent into how beneficial it was.
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Quote:
Originally Posted by calf
I think it's more that if you don't set up your tax deduction right at the second job, and if you're not paid a lot, they may not take enough, or any off at the source, meaning when you add it all up you have to pay a significant chunk. It's not more than you would have paid, but it's a bit of a shock when you see that large amount owing on your tax return.
The key is to communicate with the 2nd employer that you have another job and to take tax off, since the first set of credits/deductions are given to you by your first employer.
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This is correct. So the initial assertion is true because each employer is accounting for your basic personal tax credit and as such its being counted twice (or however many jobs you have) despite only being applicable once.
So the second employer is taking little to no taxes off (because you're presumably earning most of your money at your primary employer and as far as they know you're in the lowest bracket) and when its tacked on top of your primary income you're short on your tax withholdings.
The more jobs you do this with the worse it gets unless you stay on top of it and make allowances.
On the main topic though, I worked 2-3 jobs to get through University, I'm not doing that again.