Your first US paycheck is almost always smaller than you expect. Here is where the money goes.
Gross pay: your pay before anything is taken out. A $52,000 salary is $2,000 gross every two weeks if you are paid 26 times a year.
Net pay ("take-home pay"): what lands in your bank account.
Your pay stub (the statement with each paycheck) lists:
Federal income tax: based on your W-4 form.
State and city income tax: in many states and some cities. This differs by state; see In your state below.
Social Security: 6.2% of wages, up to a yearly limit ($184,500 in 2026).
Medicare: 1.45% of all wages (plus 0.9% on very high wages).
Social Security and Medicare together are called FICA.
Benefits: health insurance, retirement savings (401(k)), and others you chose.
On your first day you fill in Form W-4. It tells your employer how much federal tax to take out.
Step 1: name, address, SSN and filing status (Single, Married filing jointly, or Head of household).
Step 2: only if you have more than one job, or your spouse also works.
Step 3: children and other dependents, if you qualify for the credits.
Step 4: optional extra amounts.
Nonresident aliens for tax (many F-1 and J-1 workers in their first years, and some H-1B workers in the year they arrive; see Resident or nonresident for US tax? F-1, H-1B and more) follow special IRS instructions: generally check Single or Married filing separately (even if married), and do not write "Exempt". Ask your employer for the nonresident instructions (IRS Notice 1392).
If too little tax is taken out, you owe money in April. If too much, you get a refund.
The FICA exemption for F-1, J-1 and M-1
If you are in F-1, J-1 or M-1 status and a nonresident alien for tax, your wages are generally exempt from Social Security and Medicare, when the work is allowed by your status. This includes on-campus jobs, CPT and OPT.
It usually ends when you become a resident for tax (for most students, after 5 calendar years in the US).
It does not cover F-2, J-2 or M-2 family members who work.
Check your pay stub. If you see "Social Security" or "OASDI" and "Medicare" deductions, show your employer this rule and ask for a refund. If they cannot fix it, you can claim it from the IRS with Forms 843 and 8316.
By January 31, your employer sends a Form W-2 showing your total pay and taxes. You need it to file your tax return.
Choosing "Exempt" on the W-4 because someone said students do not pay tax.
Not checking the first pay stub. Mistakes are easier to fix early.