Today I want to discuss a common issue that many married couples face when both partners work and withhold taxes as “married” on their W-4 forms. This situation often leads to under-withholding, resulting in tax liabilities that can surprise you come tax time. However, during a recent meeting with a client, I was reminded of another issue that occurs with second jobs that is just as common.
The couple I worked with was married, and like many people, both individuals withheld taxes as “single” for their main jobs. This usually works out fine, and their tax withholding is generally on target. However, the problem arose when one of them took on a part-time job. Let me explain why this creates a tax issue.
The Problem with Part-Time Job Withholding
The primary issue with second jobs is that employers tend to withhold tax as if that part-time job is your only source of income. In this case, the wife in the couple I worked with was employed part-time, and her second job was taxed as if it was her only source of income. The employer withheld taxes based on the assumption that she was single, which is a mistake for many married couples who have already taken their standard deduction at their primary job.
Let me break down why this is problematic. In 2025, the standard deduction for a single person is $14,600, which means that the first $14,600 a person earns is exempt from federal income tax. Now, if your second job is treated as if it is your only job, the employer will withhold taxes based on the first $14,600 being tax-free—meaning they won’t withhold taxes on this amount. The issue arises because most married couples already use up their standard deduction at their main jobs, which means the second job’s income is not being taxed properly.
In this specific case, the couple was in the 12% tax bracket. What that meant was that the second job income was being taxed at 12%, even though the withholding from the second job was minimal because it was treated as though it was tax-free. The first $300 per week from the part-time job, for instance, was treated as though no taxes were due, but in reality, that amount should have been taxed at 12%. This resulted in a large tax bill when it was time to file their taxes.
The Solution: Adjust Your Withholding
If you are working a second job, the best thing to do is to approach your part-time employer and ask if they can adjust the withholding. Specifically, you should ask them to withhold a straight 12% for federal taxes and 5% for state taxes, if applicable. This way, you can avoid any surprises when you file your taxes. By withholding a flat percentage, you will ensure that enough tax is taken from your second job’s income throughout the year, preventing any issues during tax season.
This strategy works well because you will have already withheld the necessary taxes for your second job. As a result, unless your second job income pushes you into a higher tax bracket, you should not owe additional taxes at the end of the year. The key here is understanding that while it may seem like the first part of your second job’s income is tax-free, it is not—so it is essential to have proper withholding in place.
No Need to Quit Your Second Job
When I explain this issue to clients, they often ask me, “Are you telling me I should quit my second job? Should I stop working a second job?” The answer is no, absolutely not! There is no reason to quit your second job. You are still earning money, and for most people working a second job, you are keeping most of the income you earn. The issue is not whether the second job is good or bad, but simply understanding how it affects your taxes when it comes time to file.
In many ways, this situation is similar to what I see with my self-employed clients. Self-employed individuals, such as Uber drivers or freelance workers, face a similar challenge because they do not have automatic tax withholding like employees do. At tax time, many self-employed individuals owe a substantial amount of money because they have not set aside the appropriate funds for taxes. However, that does not mean that being self-employed is bad—it just means that you need to understand the tax implications and plan ahead accordingly.
Conclusion
If you are working a second job, congratulations on your hustle and your ability to provide for yourself and your family. However, it is important to recognize that second jobs can create some issues come tax time if your withholding is not set correctly. The good news is that by adjusting your withholding to a flat percentage, you can avoid these issues and make tax season much easier to navigate.
Understanding the tax implications of multiple jobs or self-employment is crucial to managing your finances effectively. Once you are aware of the potential tax problems, you can take steps to address them in advance and avoid unexpected bills when you file your taxes.
Thank you for reading. I hope this information helps you make more informed decisions about your tax withholding, and as always, if you have any questions, feel free to reach out.
🔹 Attorney Louis S. Haskell’s Social Media Links 🔹
📸 Instagram: @attyhaskell
💼 LinkedIn: Louis S. Haskell
🎵 TikTok: @attyhaskell
📝 Threads: @attyhaskell
🐦 X (Twitter): @AttorneyHaskell
📺 YouTube: @attorneyhaskell16
🔹 Facebook Groups & Profile 🔹
🛂 Immigration Group: Massachusetts Immigration Attorney
💰 Bankruptcy Group: Massachusetts Bankruptcy Attorney
🚗 Accident Group: Massachusetts Accident Attorney
👨⚖️ Facebook Profile: Louis Haskell