I have a full-time job in Texas making $46k, but it’s not enough to cover my expenses. I’m thinking of picking up a serving job in November to make some extra money. If I’m single and start this job, do I need to report the income on my taxes? I’ve tried looking it up but got confused. If I make less than around $13k from the serving job, can I leave it out, or does the fact that I already make $46k mean I’ll be taxed on everything combined? I’ve had to pay $300-$400 back the past few years, and that’s been tough. I want to make some extra money but don’t want it to mess with my tax bracket too much. Any advice?
Yes, you’ll need to report all income from your serving job, including tips, and pay any tax due.
When you file, you’ll add up everything you earned for the year to figure out if you owe or not. Tax brackets are layered, so only the income that falls into the higher brackets is taxed at those rates. Your first chunk of income is taxed at a lower rate, then it goes up in steps.
@Taj
Last year I worked two jobs, and together I was just over $60k, which bumped up what I owed from around $300 to over $500. Before adding my second job, I had a refund, so it felt like crossing the $60k mark made a big difference. I know tax brackets are layered, but seeing that big change made me wonder if I messed something up. Owning a home has made it even more confusing.
@Nova
It sounds like your withholding wasn’t set up right for one or both jobs. When you have more than one job, you need to make sure both employers know to split your tax brackets and deductions, so they withhold correctly. If not, both jobs withhold as if they’re your only income, which leads to underpaying taxes.
Let’s say Job 1 is $40k, Job 2 is $20k:
- Without adjusting for two jobs, each job withholds as if it’s the only income, which isn’t enough overall.
- If both jobs know, they adjust so that the taxes withheld add up to cover your actual tax bill.
Make sure to do this to avoid surprises.
@Nova
Also, when using tax software, remember that the refund it shows early on isn’t real until you enter everything. It might look good after entering your first job because the system is applying your full deduction against just that income. Once you add the second job, the software recalculates for your actual income, and any underpaid taxes show up then.
@Nova
When you were seeing a refund before entering your second job, that refund wasn’t real yet because it wasn’t calculating based on your full income.
Think of it like shopping. You put a few items in your cart, and it shows $35. Then, after filling the cart, the total jumps to $235. Income works the same way. Adding more raises your “total” (tax owed), even if it looked like you’d get a “refund” at first.
Your refund is basically any extra tax you prepaid. If it’s not enough, you owe the difference.
You’ll need to report all income, including the serving job. Both jobs will issue W-2s, and both go on your tax return. You don’t get to exclude one because it’s less money.
If you’re tired of owing, it sounds like you’re under-withholding. You might want to adjust your W-4 at your main job.
And remember, if you do get a refund, it’s money you could’ve taken home all year instead of letting the government hold it. But if you prefer a refund, that’s okay too. Just make sure you’re withholding enough from each paycheck.
@Morgan
I reached out to HR this year to withhold more in hopes of not owing. But money’s tight, so I think I’ll need a second job. I’m wondering if serving is a good idea or if I should look for something with regular pay and taxes taken out, like retail, so I don’t have to worry about tracking tips.
@Nova
Serving is actually a good side job since you get some cash right away from tips.
Just save a portion, say 20%, from each shift’s tips so you have money set aside for taxes. You could also have extra withheld from your main job to cover your serving income. It’s often easier than trying to calculate and save from inconsistent tip amounts.
@Nova
Totally understand. Balancing take-home pay and taxes is tough. Taking a second job is worth it if you need the cash and have the energy!
If you’re worried about owing, some tax software has planning tools so you can estimate how much to withhold. And the IRS calculator might help, though it can be a bit confusing.
Yes, you’d still need to report all income, including tips.
Here’s a breakdown to help. The $13k amount is your standard deduction, which they take off your Adjusted Gross Income to get your taxable income.
If you make $46k at your main job and say $3k at a serving job, you’ll add them up for a total income. Then the standard deduction is subtracted to get your taxable income.
For the serving job, if you earn tips over $20 a month, you’re supposed to report them, too. If the employer doesn’t report tips for you, you can estimate and report them on your return. You could also ask your main job to withhold extra taxes to cover the serving job so you don’t end up owing.
@Arlen
After owing last year, I asked HR to adjust my W-4 to withhold more, hoping it’ll help. Money’s tight, so I’m looking for something that doesn’t mess up my taxes too much. Serving might be tricky unless I keep careful track of tips.
@Nova
If you go with serving, be sure to save about 20% of your tips to cover taxes. That’ll keep you prepared if you owe.
Also, don’t worry too much about moving to a higher bracket. Only the income in that bracket gets taxed higher, not everything you make.
@Nova
Remember, you’ll need to fill out a new W-4 for changes. If you don’t make updates there, the system might not apply the changes correctly.
All income needs to be reported, even if it’s from tips. The government won’t know about your cash tips unless you report them, but if they’re electronic, they’re tracked.
You’re taxed on your total income, so you’ll need to combine the serving income with your main job.
Currently, you’re about $15k away from the next tax bracket, where anything above that point would be taxed at 22%. But you’ll never bring home less by earning more; you just keep a smaller portion of extra income at higher rates.
To avoid owing, make sure you fill out your W-4 at the new job to reflect your other income. If they think you’re only making $13k, they won’t withhold enough taxes.