Tax professionals say multiple income streams often lead to under-withholding, leaving workers surprised by tax balances they didn't anticipate.

IRVINE, CA / ACCESS Newswire / January 7, 2026 / As more Americans take on second jobs or combine traditional employment with freelance or gig work, tax professionals are warning that paycheck withholding errors are becoming a growing source of unexpected IRS bills. Clear Start Tax, a national tax resolution firm, says many workers assume taxes are being handled correctly - only to discover a balance due when they file.

According to Clear Start Tax, the issue often arises when employees split income across multiple employers. Each employer withholds taxes as if that job is the worker's only source of income, which can result in too little tax being withheld overall, especially for federal income taxes.

"Each paycheck may look fine on its own, but combined, the withholding often falls short," said a Clear Start Tax spokesperson. "That gap doesn't show up until tax time, when people are hit with a bill they weren't expecting."

The problem can be compounded when one of the jobs is freelance or contract-based. Unlike traditional employment, 1099 income typically has no taxes withheld at all, requiring workers to make estimated payments throughout the year. Many don't realize this obligation until penalties and interest are already in play.

Clear Start Tax notes that workers earning additional income may also be pushed into a higher tax bracket, increasing the amount owed even if total earnings don't feel dramatically higher.

"We see a lot of confusion from people who say, ‘I didn't make that much more,'" the spokesperson added. "But tax brackets, credits, and withholding calculations can change quickly when you add a second income source."

Tax professionals say the issue is especially common among teachers, healthcare workers, hospitality staff, and others who pick up seasonal or part-time work. Without proactive adjustments to withholding or estimated payments, even modest second incomes can create tax shortfalls.

With IRS enforcement and collection activity increasing, Clear Start Tax encourages workers with multiple jobs to review their withholding before filing season arrives.

"A small adjustment during the year can prevent a much bigger problem later," the spokesperson said. "The goal is to avoid surprises - not deal with them after the IRS gets involved."

By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.

About Clear Start Tax
Clear Start Tax is a national tax resolution firm that helps individuals and businesses address IRS and state tax issues, including back taxes, penalties, and collection actions. The firm focuses on educating taxpayers about compliance requirements and guiding them through available relief options to achieve lasting financial stability.

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Contact Information
Clear Start Tax
Corporate Communications Department
tech@clearstarttax.com
(949) 800-4011

SOURCE: Clear Start Tax