Why is so much taken out of my first paycheck?

Federal income tax (per your W-4), FICA (7.65 percent combined), state tax where applicable, and any voluntary deductions you elected.

Should I claim "exempt" on my W-4?

Only if you owed zero federal income tax last year and expect zero this year. Read the W-4 instructions carefully.

Can I get FICA refunded?

Usually no. Narrow exceptions exist for student workers at the school they attend, and for non-resident alien students on F-1, M-1 or J-1 visas.

When do I file my first return?

If your income exceeds the IRS filing threshold or if you had federal tax withheld and want a refund. Filing season opens in late January.

Student First Job Paycheck Guide

First paycheck. Smaller than the offer letter implied. Here is what came out and why.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

Why your first paycheck is smaller than expected

Gross is what you earned. Net is what lands after federal income tax, FICA (7.65 percent combined), state tax (where applicable), local tax, and any voluntary deductions. For a student earning $15 per hour at 20 hours per week, federal withholding can be small (or zero with the right W-4) but FICA is always there.

The W-4

This tells your employer how much federal tax to withhold. As a student earning under the standard deduction, you may qualify to claim "exempt" on the W-4. Only if you owed zero federal tax last year and expect zero this year. Read the W-4 instructions.

Are scholarships taxed?

Scholarships used for qualified tuition and required fees are tax-free. Scholarships for room, board, or non-required expenses are taxable. This sits separate from your paycheck.

Will I get a refund?

If your annual income is below the standard deduction and federal tax was withheld, yes. FICA withholding is generally not refunded.

Do I have to file?

Depends on total income. Even if not required, file to claim withheld federal tax. Use IRS Free File if income is low.

Frequently asked questions

Why is so much taken out of my first paycheck?: Federal income tax (per your W-4), FICA (7.65 percent combined), state tax where applicable, and any voluntary deductions you elected.
Should I claim "exempt" on my W-4?: Only if you owed zero federal income tax last year and expect zero this year. Read the W-4 instructions carefully.
Can I get FICA refunded?: Usually no. Narrow exceptions exist for student workers at the school they attend, and for non-resident alien students on F-1, M-1 or J-1 visas.
When do I file my first return?: If your income exceeds the IRS filing threshold or if you had federal tax withheld and want a refund. Filing season opens in late January.