We already mentioned the paperwork involved with your loans, and by now you know to hang on to that stuff. Unfortunately, out here in the real world, there's a whole lot of "stuff" to fill out, turn in, and hang on to a copy of. And once you get a job, the stuff just mushrooms. Here's a quick overview of some of what will surely clog your filing cabinet (or a shoebox in your closet, whatever):
The W-4: Every new job you get, you'll fill one of these out – in fact, you probably already have. It's the one where you claim dependent exemptions – if you're single and childless, you probably claimed either 1 or 0. Those exemptions determine how much money is withheld from your check. Remember: the more money they withhold, the less you owe next April – and vice-versa.
The I-9: If you've done a W-4, you've done an I-9. It's the form that ensures that you're a United States citizen or, if not, that you're eligible to work here. Have some ID ready for this one.
Health insurance: Health insurance benefits good. Health insurance forms not so good. If you're lucky enough to have an insurance benefit, you'll need to wade through these things, and there's no real way around it. Get help from Human Resources if you're confused – it's their job to understand this stuff.
Paycheck: Don't be thrown if your check has less money than you expected – a lot less. That salary that you've been promised is pre-tax. The federal government withholds Social Security tax, Medicare tax and your federal taxes. State and local governments usually dip their beaks in as well.
Oh, and there's the portion of health insurance that you're responsible for —it gets taken right out of the check. And a 401(k) contribution. Couple other things too, no doubt. Point being, not all that money ends up in your pocket. That doesn't mean you're being ripped off – it just means you should pay attention – and expect some skimming off the top.
Taxes: Like we've said, by the time they hand you your paycheck, you've already paid taxes – just not all of them. Come the spring, when the flowers are in bloom, chances are you'll find yourself parked at the kitchen table, poring over even more forms. Be ready for this.
Sometime in January, you'll get a W-2 – that's the summary of everything your employer paid you during the past year, including things like that 401(k) and other things that don't quite feel like money at this point in your life. Once again (say it with us), hang on to this. You'll need it to file taxes in April.
Of course, the W-2 is just the beginning. There's plenty of paperwork for you to keep up with, and plenty of other stuff too. For instance, if you're going to itemize your deductions, you're going to need to keep receipts from throughout the year to prove what you spent on stuff like medical expenses, moving expenses, charitable donations, even job search expenses. When in doubt, hire someone to help you. The hundred bucks you spend today may seem like a lot, but it'll be money well spent if it helps you save more than that on taxes – to say nothing of avoiding a penalty from the IRS for improperly submitted taxes. If you do decide to go it alone, make sure you read the fine print and know which deductions you're eligible for, and which ones you're not.
