According to the U.S. Census Bureau, 13 million Americans held more than one job in 2019, and with the rapid growth of the gig economy, that number has likely increased in recent years. Many Americans take on extra jobs for supplemental income, to expand their skill sets, or simply to explore different interests. When you factor in those who changed jobs during the year, a significant number of people end up with two or more W-2s at tax time.

How Having Multiple Jobs Affects Your Withholding

If you have more than one job, it’s important to make sure you’re withholding the correct amount of taxes, especially in light of recent tax law changes. Each of your W-2s will show how much was withheld, but that doesn’t necessarily mean it’s the right amount.

For example, if you had two jobs at different times of the year—one for five months, followed by a layoff, and then a second job for six months—your withholding was likely sufficient, as it was based on having only one job at a time. However, if you work two jobs simultaneously, you may need to adjust your withholdings to avoid owing more taxes later, since you’re earning dual income.

Anytime you experience a change in income, take on multiple jobs, or start a new job, it’s essential to review and update your W-4 withholdings. Completing a new Form W-4 for your employer will help ensure the right amount of taxes are withheld from your paycheck. The IRS introduced a new Form W-4 Employee’s Withholding Certificate, starting with the 2020 tax year, to help you better adjust your federal tax withholding.

Now is a great time to do a paycheck check-up and update your W-4 withholdings, especially if you want to adjust your tax outcome—whether that’s to increase your paycheck or get a larger refund come tax time.