On the Job: Managing your money
BALTIMORE -- So you've been hard at work, "On the Job," and finally, it's payday! But what should you do with that money? WJZ spoke to experts to get some financial management tips.
The first thing experts say you should do is to "pay yourself first." That means setting aside a certain amount of money for a specific purpose every time you get paid before you begin paying your other expenses.
Where should your money go? Experts recommend setting up a bank account with a checking account, and a savings account. That way, you have a location for your money to go if you're paid digitally. If you get a paper check, you can still open a bank account and deposit your paper checks by going to a branch or using mobile banking.
When it comes to taxes, there are a few things to know. When you're paid by your employer, you'll notice that taxes are taken out from your paycheck. This is why you will see a slightly lower amount of income than expected on your pay stub.
Here's a taxes fact sheet from the Maryland Comptroller.
Your employer will direct you to fill out a W-4 form. The W-4 form allows your employer to know how much of your income will be withheld for tax purposes.
You'll also receive a W-4 form, which tell you the amount of wages you've earned, and how much you've paid in federal and state taxes.
When it comes to filing taxes, you won't have to file if you make under a certain amount, and you're claimed as a dependent by your parent or guardian.
If you do have to pay taxes, you'll file a state and federal tax return, which is due in April of every year.
Information and Resources:
The Fulton Bank Education Center:
https://www.fultonbank.com/Education-Center
Information About Filing Individual Income Taxes in the State of Maryland:
https://www.marylandtaxes.gov/individual/income/filing/index.php
Information about Form W-4, Form W-2, and Form 1040 (US Individual Income Tax Return):
https://www.irs.gov/forms-instructions
Information from the IRS Regarding Filing Requirements for Most Taxpayers:
https://www.irs.gov/publications/p501#en_US_2022_publink1000270109
