First job tax basics: what to expect on your first paycheck
Apr 30, 2026
First paycheck. You earned $300. The number on the check says $251.40.
Where did the $48.60 go? It did not disappear. Here is exactly what happened.
Gross pay
$300.00
What you earned before anything is taken out.
Net pay
$251.40
What actually hits your bank account.
Where the $48.60 went
| What | Roughly | Why |
|---|---|---|
| Federal income tax | ~$15–25 | Funds the federal government |
| Social Security | $18.60 (6.2%) | Retirement & disability for everyone |
| Medicare | $4.35 (1.45%) | Funds Medicare |
| State tax (varies) | $0–10 | Depends on your state |
Nothing is missing. Some of it (Social Security, Medicare) goes into a giant pool. The federal income tax part might come back as a refund next year if you over-paid.
1
What is a W-4?
On your first day, your employer gives you a W-4 form. It tells them how much federal tax to withhold from each paycheck.
Most teens at a first job:
- Filing status: Single
- Steps 2–4: leave blank unless you have multiple jobs or weird stuff
- Step 5: sign and date
2
What is a W-2?
In January, your employer sends you a W-2 form. It summarizes how much you earned and how much was withheld for the whole year.
You will need it (or the digital version) to file your taxes.
3
What you should NOT do
- Spend like you earned $300. You earned $251.40 net. That is the real number.
- Be mad at the company. They did not take the money. They sent it where it was supposed to go.
- Toss your pay stubs. Save them. They prove how much you earned and what was withheld.
What to try this week
This week
- Look at your pay stub. Find: gross pay, federal tax, Social Security, Medicare, state tax, net pay.
- Make sure your filing status on the W-4 is correct.
- Save digital copies of all your pay stubs.
Related lessons & glossary
Sources & further reading: IRS · Tax info for students · SSA · How Social Security works
Educational only — not financial, legal, tax, or investment advice. Talk with a qualified professional and a trusted adult before making money decisions.
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