Some words of wisdom about taxes
- When you get a paycheck, you have 2 kinds of income:
- Gross--Your salary or (# of hours worked) x (pay rate) BEFORE TAXES
- Net--The amount you "take home" after taxes have been deducted AFTER TAXES
- There are 3 kinds of tax:
- Federal (levied by the Internal Revenue Service [IRS])
- State (levied by the state in which you work)
- Local (levied by the city. NYC is one of 14 cities that levy taxes from income)
- Don't forget FICA which is a tax that funds Social Security and Medicare
- The 15th of April is Tax Day in the United States. Your tax form must be postmarked by 11:59 PM on that date.
