My First Job or Part-time Work
After you begin your first job, you will receive your
first hard-earned paycheck. Your paycheck may be
much less than what you were expecting. Where did the
rest of your money go?
The answer, of course, is income taxes. Several types
of taxes are withheld from each paycheck you
receive. Some of these taxes include
federal taxes (IRS), state taxes (ODT), and local taxes
such as cities or school districts.
Let's take a look at a sample pay-stub.
The sample paystub shows a variety of different taxes
that have been withheld from this paycheck.
Depending on your employer, you may also have
additional money withheld for medical insurance or
retirement benefits. Withholding amounts are determined
by completing the Federal Form W-4 and Form IT-4 for
the State of Ohio. These taxes and other monies
collected allow the government to pay its employees and
provide services to our communities. Some of
these services will be familiar to you. The fire
department, the police department, local parks and
recreation centers, public libraries - all of these
services are provided free because we all pay taxes on
Form IT-4 and W-4
At the end of each year, your employer will send you a
W-2 form. The W-2 will contain all wages, taxes
and other deductions for the past year. You will
use the W-2 to file your annual tax return. For more
information on W-2s and an example of a W-2, visit
Filing My Ohio
Income Tax Return. There you can find an example
and explanation of a W-2 form.
You may also have a part-time job babysitting or mowing
your neighbors’ lawns. These services may be taxable in
some instances but in many situations they are not
taxable. For instance, mowing lawns is only taxable if
your gross sales are more than $5,000 in a single year.
Babysitting and many child care services are
non-taxable. For more information check under the
Entrepreneurs section of this site.