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Writer's pictureSamer Hilal

Understanding your Paycheck PT 1

Updated: May 10



Welcome to part two of my budgeting video series where we dive deeper into W-2 income, the most common source of income for many. In this session, we'll explore various tax deductions and withholdings from a typical paycheck and discuss which of these can be controlled by you.


We'll use the example of John Smith, a W-2 employee earning a gross monthly income of $10,000, to illustrate how FICA, federal, state, and local taxes, along with benefits like health insurance and retirement contributions, impact net income. You'll learn how to adjust withholdings to better manage your year-end tax liabilities and take full advantage of employer-matched retirement contributions.


Understanding these deductions is crucial for financial planning and maximizing your take-home pay. Stay tuned for further exploration of other income types in upcoming videos. If you have questions or need guidance, don't hesitate to reach out. Let's talk about making your money work harder for you. Thank you for joining me!

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