Why Are All Those Taxes Taken out of My Paycheck?
Nasdaq Teenagers starting their first job this summer are in for an unpleasant surprise.
When they get their first paycheck, they're going to see how much theyearnedbut they'll also see what they werepaid.In between, they'll be shocked at how much of their money was taken out for taxes.
That jolt doesn't go away as you get older, either. I'm still floored every payday when I see how much is subtracted from my wages for taxesand I'mwaaaaypast my teenage years.
The Tea
Depending on how much you make, where you live, and certain other factors, it's not uncommon to have 10%, 20%, 30%, or more withheld from your paycheck for taxes.
That can be a hard pill to swallowfor teenagersandadults. You work hard for your money, and it's no fun having such a large chunk taken away and sent to the government.
YATI Tip:For kids still looking for work, check out our list of summer job ideas for teens.
But your frustration level might come down a bit if you understand why those taxes are taken out of your pay and how they're calculated.
