Husband has two w2s. One is base salary, the other is commissions. I'm using turbo tax but will resort to an actual certified human shortly. I put in his one w2, all good. Then I put in his other w2 and we owe big time. So I asked for his w4 to see how many deductions he claimed. He only has one w4. Is he
Husband has two w2s. One is base salary, the other is commissions. I'm using turbo tax but will resort to an actual certified human shortly. I put in his one w2, all good. Then I put in his other w2 and we owe big time. So I asked for his w4 to see how many deductions he claimed. He only has one w4. Is he supposed to have two for each w2? I'm also not even going to say how many deductions he made.. Totally makes sense that we owe.
it would appear to me that one of what you claim is a W-2 is actually a 1099, you misinterpret it since it likely is from the same company and in reality the company is wrong if they paid him wages and reported on a W-2 and paid commissions on the same job in the form of a 1099–independent contractor
as such he is required to pay his own self employment tax, this income is reported on Sch C and the self employment on Sch SE
the did not withhold any taxes on the 1099(commissions) thus he owes
You are doing nothing wrong. Your husband is doing something wrong. A person who will be getting more than one W-2 should not be claiming "two" for each W-2. The person should be claiming either (a) zero for each, or (b) one for one and zero for the other. If the person claims anything more than that, such as claiming 2 on any W-2 or claiming 1 on both, the person normally owes.
You only fill out 1 W4 per company. They may not have withheld taxes properly from the commission check(s). If he claimed a lot of exemptions in order to get more in his weekly check, it could well put you into position to owe.
What you did wrong was look at the refund before you had entered all the income.
Your taxes do are based on your total income. What the system said when you had only one W2 entered is meaningless.
He would only have 1 W-4 for 1 employer. There are instructions on the W-4 to determine how many "allowances" to put on the W-4. There is also a calculator for that on the IRS website. If he claimed too many allowances it was his fault if he ended up short. If he owes over $1000 there may also be a penalty (with only a few exceptions).
The reason you owe is because the 2nd W2 put you on a higher tax bracket. Commission is usually paid as a 1099, maybe the employer took taxes but not enough. There are many things you can do to reduce your gross salary such as. If your husband does not have a work IRA, he can put up to 6500 on a roth IRA, Use an accountant to fill your taxes if you not sure.,
Nope, just one. So all his different paychecks are all based on the one W-4.