I owe every year

Owing federal income tax at the end of the year.  Here are some scenarios:

1. Under-withholding:

• Each job assumes you have only one source of income.  
• Your tax rate increases as your income rises. 

2. Limited Standard Deduction:

• You can only claim one standard deduction on your tax return, regardless of the number of jobs you hold.  

3. Incorrect W-4 Form:

• Outdated or inaccurate information on your W-4 forms, especially regarding allowances or multiple jobs, can lead to under-withholding. 

4. Other income sources without withholding:

• If you have other sources of income that don't have taxes automatically withheld, like side work, investment income or self-employment,  you'll need to account for those when determining your tax liability. 

How to avoid owing taxes or a large tax bill:

1.  Complete a new W-4 Form. 
2.  Here is a great link to calculate your tax liability and prepare an updated W-4:  W-4 Tax Calculator 
3.  Account for all income sources:   When completing your W-4 form, ensure you account for all sources of income, including secondary jobs and other income sources that do not have automatic withholdings.
4.  Make estimated tax payments:  You can make quarterly estimated tax payments to the IRS.  Here is the link for estimated tax payments:   IRS estimated tax payments