What you need to do before your first paycheck

Before you start work, your employer will ask you to fill out a W-4 form (the official name is "Employee's Withholding Certificate"). This form tells your employer how much federal income tax to take out of each paycheck. You also need to provide your Social Security number and sign an I-9 form to prove you are legally allowed to work in the United States.

Some states also require a state withholding form — ask your employer or check your state's tax department website to find out. If you live in one of the nine states with no income tax (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, or New Hampshire), you will not need a state form.

The W-4 is not a tax return. It is a prediction you make about your income so your employer can withhold the right amount. You can change it anytime during the year if your situation changes — for example, if you get a second job or if you realize too much is being taken out.

Key Takeaways

  • Fill out a W-4 form before your first paycheck; this tells your employer how much tax to withhold from each check.
  • Your employer will also ask for an I-9 form and your Social Security number to verify you are legally allowed to work.
  • Most first-time workers should claim themselves as a dependent on the W-4 unless a parent or guardian claims them on their own tax return.
  • You will file a tax return in the spring after the year ends, using the W-2 form your employer sends you in January.
  • If you earned less than the standard deduction for your filing status, you may not owe taxes, but filing anyway can get you a refund of withheld money.

Filling out the W-4 form correctly

The W-4 has five main steps. On Step 1, enter your name, address, and Social Security number. On Step 2, select your filing status — if you are single with no dependents, choose "Single". On Step 3, claim yourself as a dependent unless your parent or guardian is claiming you on their own return (ask them first).

Step 4 is where you account for other income or jobs. If this is your only job, leave it blank. Step 5 lets you request extra withholding if you want more tax taken out, or claim a deduction if you expect to have very little income. Most first-time workers leave Step 5 blank.

The IRS provides a withholding calculator on its website (irs.gov) that walks you through the W-4 step by step. If you are unsure about any line, ask your employer's HR or payroll department — they handle these forms every day and can explain what each step means for your situation.

Understanding your first paychecks

Your first paycheck will show what you earned (called "gross pay") and what was taken out (called "deductions"). Federal income tax, Social Security tax, and Medicare tax are the main ones. You will also see any state income tax if your state has one. These deductions are normal and required — they do not mean something is wrong.

Keep your pay stubs (the paper or digital record that comes with each check). They show what was withheld and you will need them later if you have questions. Your employer should also give you a receipt or confirmation that you received your W-4 — keep that too.

What happens at tax time

In January of the following year, your employer will send you a W-2 form showing how much you earned and how much tax was withheld. You will use this form to file your tax return. You can file using free software (the IRS Free File program offers free federal returns to people under a certain income threshold), or you can pay a tax preparer to file for you.

You do not have to file a return if you earned less than the standard deduction for your filing status. For 2024, the standard deduction for a single person claimed as a dependent is $1,600. However, if you had taxes withheld from your paychecks, filing a return will get you a refund of that money — so it is worth doing even if you do not owe taxes.

The important date to file is April 15 of the following year, though you can file earlier once you have your W-2. If you cannot file by April 15, you can request an extension, but extensions do not extend the important date to pay taxes owed — only the important date to file the paperwork.

Self-employment and side income

If you are a contractor, freelancer, or gig worker instead of an employee, you will not receive a W-4 or W-2. Instead, you will track your own income and expenses and file a Schedule C form with your tax return. You will also owe self-employment tax, which covers both the employee and employer portions of Social Security and Medicare.

If you have both a regular job and side income, you still fill out a W-4 for your main job. You may want to request extra withholding on Step 5 to account for the self-employment income, so you do not owe a large amount at tax time. Talk to a tax preparer if you are unsure how much to withhold.

Common mistakes to avoid

The biggest mistake is claiming too many allowances on the W-4 so that too little tax is withheld. This feels good in your paycheck, but you will owe money in April. The opposite mistake — claiming zero allowances — means too much is withheld and you get a large refund, which is really just your own money returned to you late.

Another mistake is not updating your W-4 when your situation changes. If you get married, have a child, or take a second job, your withholding may no longer be correct. You can submit a new W-4 to your employer anytime.

Do not ignore a notice from the IRS or your state tax department. If something looks wrong on your W-2 or if you receive a letter, contact the sender right away. Most issues are straightforward to fix if you address them quickly.

When to talk to a professional

If you have only one job and no other income, you can almost always handle taxes yourself using free software or a straightforward tax return. However, if you have self-employment income, multiple jobs, investment income, or if you are claimed as a dependent but also have your own dependent, a tax preparer or accountant can save you time and money by making sure you do not miss deductions.

Many tax preparers offer free consultations, so you can ask questions before you decide to hire someone. Community colleges and some nonprofits also offer free tax help through the Volunteer Income Tax information (VITA) program — search "VITA near me" to find a location.

Frequently Asked Questions

Should I claim zero allowances on my W-4 to get a bigger refund?

No. Claiming zero means more money is withheld from each paycheck, but that money is just your own earnings held until April. You will get it back as a refund, but you could have used it during the year. Aim to have the right amount withheld so your refund is small.

What if I made very little money and do not think I owe taxes?

You may not owe taxes, but if your employer withheld money from your paychecks, filing a return will get that money back. The standard deduction for a dependent in 2024 is $1,600, so if you earned less than that, you likely do not owe anything — but filing still makes sense to recover what was withheld.

Can I change my W-4 after I submit it?

Yes. You can submit a new W-4 to your employer anytime if your situation changes or if you realize your withholding is wrong. There is no penalty for changing it, and the new amount will take effect on your next paycheck.

Do I need to file a state tax return if I only worked part of the year?

It depends on your state and how much you earned. Most states follow the same standard deduction rules as the federal government, so if you earned less than the standard deduction, you do not have to file. However, some states have lower thresholds, so check your state's tax department website or ask your employer.

What if my employer did not give me a W-2 by January 31?

Contact your employer's payroll department and ask for it. If they do not provide it by mid-February, you can contact the IRS at 1-800-829-1040 or file your return using your pay stubs as a record of income. Keep trying to get the W-2, because you will need it if the IRS has questions about your return.