First Job Tax Guide: What Every New Worker Should Know
Getting your first paycheck can be a shock when you see how much was deducted for taxes. Understanding what those deductions are, why they exist, and how to set up your W-4 correctly will help you keep more of your hard-earned money.
Your W-4: The First Tax Decision
On your first day, you will fill out Form W-4. This tells your employer how much federal income tax to withhold from each paycheck. For most single filers with one job and no dependents, simply entering your information in Steps 1 and 5 is sufficient.
Understanding Your Pay Stub
- Gross Pay: Your total earnings before any deductions
- Federal Income Tax: Withheld based on your W-4 and income level
- Social Security Tax: 6.2% of your gross pay (up to the wage base)
- Medicare Tax: 1.45% of your gross pay
- State Income Tax: Varies by state (some states have none)
- Net Pay: What you actually take home
Do You Need to File a Tax Return?
For 2025, single filers under 65 must file if their gross income exceeds $15,000 (the standard deduction amount). Even if you earn less, you should file if taxes were withheld from your pay — you will likely get a refund.
Your First Tax Return
- You will receive Form W-2 from your employer by January 31 of the following year
- Use the W-2 to fill out Form 1040 (or use free tax software)
- As a single filer with simple income, you qualify for IRS Free File
- The filing deadline is April 15
- If you are owed a refund, file early to get your money faster
Most new workers with a single job and no other income will get a refund. The standard deduction means your first $15,000 in income is not taxed at all in 2025.
