Job Taxes

 

Learn how to make the most of your salary, benefits, and tax deductions at your new job.

W-4 withholding

The number of withholding allowances you enter on your W-4 might affect your refund or how much you’ll owe the government every year.

To get an idea of how much you should withhold, figure your withholding amount with the H&R Block Calculator at www.hrblock.com/get-answers/tax-calculators.html.

Working two jobs

People who work two jobs often don’t have enough tax withheld from their part-time earnings. So, they might wind up owing a large sum of money at tax time. To avoid this, you might need to increase the amount of money withheld either from your main paycheck or from your second job — or both.

To change your withholding, ask your employer for a new Form W-4. You can also download and print a W-4 at www.irs.gov/formspubs. Give the completed form to your employer to change your withholding.

Retirement savings

You should consider contributing as much as possible to your 401(k) or other company retirement plan. Many companies will match your contributions with a certain amount. Ex: For every dollar you contribute, your company might contribute 50 cents.

Your employer usually takes retirement contributions out of your paycheck, so you won’t miss the money. You’ll usually make these contributions with pre-tax dollars. So, you’ll defer tax on this portion of your earnings.

Other fringe benefits

Take advantage of other pre-tax benefits your employer provides. One common benefit is a Section 125 plan, referred to as a flexible spending account or cafeteria plan. A flexible spending account allows you to pay for medical and childcare expenses using pre-tax dollars. A health savings account (HSA) allows you to pay for medical expenses using pre-tax dollars. Using these plans might result in significant tax savings.

Also, see these tax tips:

  • W-4 Withholding
  • Health Savings Accounts (HSAs) and Flexible Spending Arrangements (FSAs)
  • Your Paycheck

Related Topics

Related Resources

Reporting Business Income Or Loss

How should you report business income or a loss? Learn more about self-employment income, hobby loss rules and other tax issues at H&R Block.

IRS May Start to Tax Your Account in the Caymans

Have you ever thought about investing in a Cayman Islands tax haven? Before opening an account, or making adjustments to an already existing account, review these tax tips.

How Renting Out Your Extra Bedrooms Affects Your Taxes

Thinking about renting out a room in your home? Learn more about the potential tax implications with the experts at H&R Block.

Social Security Income Tax

Learn more about social security tax and how it affects your income and benefits from the tax experts at H&R Block.