Got your first job? Three things to do to be ready for income taxes – Khan Academy Blog

posted on August 21, 2023

Congratulations on your first job! There is so much to learn when you start a new job, and one thing that might not be top of mind is paying income taxes.

A lot of people are surprised when they receive their first paycheck—where is all my hard earned money going? Khan Academy is here for you to make sure you’re prepared, from the moment you receive your first paycheck until you have to file your income taxes the following year.

Here are the top three things you can do to be prepared for filing your income taxes:

1. Understand your tax forms. Working through documents like the I-9 (or W-9) and W-4 is key when you start a new job. To break it down simply, the I-9 or W-9 are your tickets to working legally. The W-4 is a crucial tool for managing how much of your income goes toward taxes—like a roadmap that explains the difference between your earnings and what you owe.

2. Start saving now. This is your chance to develop a solid savings habit. Each time you cash in a paycheck, consider it an opportunity to put money toward your future. Trust us, when tax season rolls around, you’ll pat yourself on the back for saving a portion of  your salary just in case you owe taxes. 

3. Discover tax credits and deductions. Take some time to understand tax credits and deductions,particularly if you’re dealing with education costs or are making donations. Your expenses could actually help you lower how much you owe in taxes. Plus, if you qualify for tax credits, you might be able to slash your tax bill even and receive a tax refund.

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