You worked the hours, did the math in your head, and then… the check is smaller than you expected. Where did the rest go? Meet taxes, the W-4, and the pay stub. Once you understand these three things, no paycheck will ever surprise you again.
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Say you worked 15 hours at $14 an hour. That's $210, right? Not in your pocket. The $210 is your gross pay — the amount before anything is taken out. What actually lands in your account is your net pay, or "take-home." The difference is money your employer is legally required to hold back and send to the government on your behalf. Those subtractions are called deductions or withholdings, and the biggest one is taxes.
This isn't your boss shortchanging you — every worker in the country, from a first-day teen to a CEO, has this happen. The good news: as a teen who doesn't earn a huge amount, you may get a lot of the income-tax portion back when you file a tax return. Let's break down exactly what's coming out and why.
Three main things, and none of them are a mystery once you see them side by side.
A share sent to the U.S. government. How much depends on how much you earn and your W-4. Earn little and you may get most of it refunded when you file.
Together called FICA — a flat 7.65% of your pay that funds retirement and health programs. This one you don't get back; everyone pays it.
Many states take a small income-tax cut too — but some states take zero. Whether you see this line depends entirely on where you live.
There can be a few others — like health insurance or a retirement contribution — but at a typical teen job, taxes are the main event. Notice that FICA is a fixed percentage, so it's predictable. Income tax is the flexible one, and that's exactly what the W-4 form controls.
On your first day, your employer hands you a W-4 form. Its one job is to tell your employer how much federal income tax to hold back from each check. Fill it out so too much comes out, and your paychecks are smaller but you get a refund later. Fill it out so too little comes out, and your checks are bigger but you might owe money at tax time.
For most teens, the W-4 is short and simple: you write your name, address, and Social Security number, check the box for your filing status (usually "single"), and sign it. You generally don't claim extra allowances or dependents. If you barely earned anything last year and expect the same this year, there's even a spot to note you're exempt from federal withholding — but only claim that if it truly applies to you. When in doubt, ask a parent or the manager to walk you through it; it's a normal question.
Every check comes with a stub. Here's what each line means, top to bottom.
You'll also see YTD ("year to date") columns — running totals of everything you've earned and paid in taxes all year. Those numbers matter when you file a tax return, so it's smart to keep every stub (or save the PDFs) until then.
Often, yes. The federal income-tax portion isn't necessarily gone for good. Because there's a standard amount of income you can earn before you owe any federal income tax, many teens who work part-time end up owing little or nothing. If your employer withheld income tax during the year but you didn't actually owe it, you get it back as a refund — but only if you file a tax return.
Filing is usually simple for a teen with one job: your employer gives you a W-2 form in January summarizing the year, and you (with a parent's help) use it to file. The FICA portion — Social Security and Medicare — isn't refundable, but the income-tax piece often is. That alone is a great reason to keep your pay stubs and file each year.
Because that hours × rate number is your gross pay, and taxes come out before you get it. Between FICA (a flat 7.65%) and any income tax withheld, expect to take home somewhere around 80–90% of your gross at a typical teen wage. The exact amount depends on your state and your W-4. Use the calculator at the top for an estimate.
You pay FICA (Social Security and Medicare) on every dollar you earn, no matter your age. Federal income tax is different — there's an amount you can earn each year before you owe any, and many teens fall under it. But your employer may still withhold income tax from your checks, which you can often reclaim by filing a tax return.
For most teens with one part-time job: your personal info, "single" as your filing status, no extra adjustments, and your signature. That's it. If you earned almost nothing last year and expect the same, you may qualify to claim "exempt" from federal income-tax withholding — but only if it genuinely applies. Ask a parent or your manager if you're unsure; it's a routine question.
You fill out a W-4 when you start a job — it tells your employer how much tax to withhold. You receive a W-2 after the year ends — it summarizes what you earned and what was withheld, and you use it to file your tax return. One is an input at the start; the other is a summary at the end.
At a regular employee job, no — taxes are already withheld for you, so your take-home is truly yours to keep. But if you earn money as your own boss (babysitting, lawn care, reselling), nothing is withheld, so you may need to set aside a portion yourself for taxes if you earn enough. That's one of the big differences between having a job and running a business.
Understanding your paycheck is step one; the next move is deciding where it goes before you spend it. Split every check with budgeting for teens, point your savings at a real target with how to save your first $1,000, and once you've got a cushion, let it grow with investing for teenagers. Don't have the job yet? Start with writing a resume with no experience and browse first jobs for teens.