Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
College graduation is a major milestone in life. All the book learning is finished and it’s time to get some practical experience. The best part is that along with your first "real" job, comes your first "real" paycheck. But with this new income, there is new responsibility--to manage it in a way that will create the best financial situation for the future.
College graduation is a major milestone in life. All the book learning is finished and it’s time to get some practical experience. The best part? Along with this first “real” job, comes the first “real” paycheck. But with this new income, there is also responsibility - to manage it in a way that will create the best financial situation for the future. Understanding all the intricacies of a paycheck is crucial in planning healthy personal finance, so it’s important to know common terms, how the W-4 fits into all this, and what payroll taxes are deducted. For most people, there are federal, state and local taxes taken from each paycheck.
First, an understanding of the basic terms found on a paystub is helpful. Below are some of the most common terms, and their definition:
Next, accurately completing a federal W-4 (Employee’s Withholding Allowance Certificate) is critical for properly managing your finances, so it’s important that you understand it. Using a paycheck calculator from PaycheckCity can help with determining the appropriate amount to claim, and is useful in checking a few different scenarios to determine which is the right withholding. A W-4 can be changed at any time for an increase in allowances, but if the amount of allowances decrease you must update it within 10 days. Each withholding allowance reduces the amount of taxable wages and results in less federal income tax withheld from a paycheck. It is based on an employee’s marital status and withholding allowances claimed.
Allowances are based on three things:
Finally, it is important to understand what taxes will be deducted from a typical paycheck. These payroll taxes include:
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
Check out the updated 2024 Federal benefit limits for 401(k), HSA, and simple IRA, and more. Stay informed and plan your finances with confidence!