Could also be that ur paying catchup if ur previous employer wasn't taking out enuff. Happened to me once and they had to take extra for like 2 months to make up for the shortfall. Worth asking HR about it.

Check if maybe you're over the Social Security wage base for the year? For 2024 you only pay SS tax on the first $168,600 of income. If you made more than that at your previous job this year, then switched companies, your new employer might not know you already hit the cap.

This has been such an enlightening discussion! As someone who's been working for about two years and always just trusted that my payroll deductions were correct without really understanding them, this thread has been like getting a crash course in adult finances that I definitely should have had earlier. The FICA labeling confusion is so real - my paystub shows "Social Security Tax" and "Medicare Tax" separately, which I now realize is actually one of the clearer ways to display it after hearing about all the creative abbreviations everyone else deals with. No wonder there's so much confusion when every employer seems to label these differently! But the absolute game-changer for me has been learning about employer matching. I genuinely had no idea that my employer has been contributing an additional 7.65% this entire time! That's literally thousands of dollars in contributions I never even knew about. It makes me want to calculate exactly how much they've contributed on my behalf since I started and also makes me think very differently about my total compensation package. This conversation really highlights how much basic financial literacy we're all missing. The fact that fundamental concepts like understanding your paystub aren't systematically taught anywhere is pretty concerning when you think about how this affects everyone who works. At least we have communities like this where people are generous enough to share their knowledge and help others feel more confident about their finances. Thanks to everyone who contributed here - you've made payroll taxes actually interesting and understandable!

This thread has been incredibly valuable! As someone who just started their first job out of college, I was having the exact same confusion about my paystub. Mine shows "FICA Tax" and "Social Security" as separate line items, which made me panic that I was being double-taxed somehow. After reading through all these explanations, I finally understand that FICA is just the umbrella term that includes both Social Security (6.2%) and Medicare (1.45%). My employer is apparently labeling the Medicare portion as "FICA Tax" while showing Social Security separately - definitely confusing but not wrong! The employer matching discovery has completely blown my mind too. Learning that my company is secretly contributing an additional 7.65% on top of what comes out of my paycheck feels like discovering hidden money I never knew existed. It makes me want to ask HR for a full breakdown of my total compensation package since there are clearly benefits happening behind the scenes that I'm not aware of. Thanks to everyone who shared their knowledge here - this is exactly the kind of practical financial education that should be taught in school but rarely is. You've turned something that seemed intimidating into something I actually understand now!

This is such a common concern that I see every tax season! You're absolutely right to use your current address on your tax return, not the old address from your W2. The IRS actually expects this - millions of people move each year and their W2s don't always reflect their current address. What matters for IRS matching purposes is the financial data on your W2 (wages, withholdings, SSN), not where it was mailed. Using your current address is not only allowed but required since that's where you actually live. Regarding the county tax savings - this is completely legitimate! Since you moved in August 2023, you'll want to prorate your local taxes based on the time spent at each address. You can calculate this by days: roughly 7 months at your old address (Jan-July) and 5 months at your new address (Aug-Dec). Many tax software programs can help with this calculation. Just make sure to keep documentation of your move (lease agreement, utility bills, etc.) in case you ever need to verify the timing, though the IRS rarely asks for this during normal processing. The savings you'll get from the lower county tax rate is money you're legitimately entitled to based on where you actually lived during 2023.

I went through this exact same situation a few years back! I was so stressed about the address mismatch, but it turned out to be much simpler than I thought. You definitely should use your current address on your tax return - that's where you actually live and where the IRS needs to send any correspondence. The W2 address is just where your employer mailed the form, and the IRS knows that people move all the time. What they care about matching is your SSN, wages, and tax withholdings - not the mailing address. Since you moved in August, you'll want to calculate your county taxes proportionally. I'd suggest keeping records of your move date and any supporting documents (lease agreement, utility setup, etc.) just in case, but you probably won't need them. The county tax savings you mentioned are completely legitimate - you're entitled to pay the tax rate for where you actually lived during each part of the year. I ended up saving quite a bit on local taxes too, and never had any issues with the IRS. Don't overthink it - just use your current address and enjoy those tax savings!

Just wanted to add some additional context about the $5,000 startup expense limit that Keith mentioned earlier. While you can deduct up to $5,000 in startup costs in your first year, this limit phases out if your total startup expenses exceed $50,000. Since you're talking about a $1,200 software purchase, you're well within the safe zone. Also, don't forget about organizational costs! These are separate from startup expenses and include things like LLC filing fees, attorney fees for drafting your operating agreement, etc. You can also deduct up to $5,000 of these in your first year. One tip: when you do form your LLC, make sure your operating agreement includes language about contributing pre-formation assets to the business. This creates a clean paper trail showing that the software you bought before formation is now officially a business asset. Your attorney can help with this language, but it's pretty standard stuff. Go ahead and buy that software - you're making a smart business decision and the tax treatment will work out just fine!

I'm a tax preparer and wanted to jump in to confirm what everyone's saying - you absolutely can deduct that software purchase as a startup expense! Your dad might be thinking about it from a bookkeeping perspective (where you can't record it under the LLC name until it exists), but for tax purposes, the IRS is very clear that legitimate business expenses incurred before formation are deductible. A couple of practical tips: First, pay for it with a dedicated account if possible (even a personal account you use only for business) rather than mixing it with personal purchases. Second, write a brief memo to yourself documenting why you bought it and how it relates to your planned business - this creates contemporaneous evidence of business purpose. The software will likely qualify for immediate expensing under Section 179, meaning you can deduct the full $1,200 in the year you start your business rather than having to spread it out. Don't let this sale slip away - it's a legitimate business expense regardless of when your paperwork gets filed!

Great question! I went through this exact same process two years ago when I moved from India on H1B. Let me break down what I learned: You'll likely be a "nonresident alien" for your first partial year (2025 if you arrive next month), then become a "resident alien" in 2026 once you pass the Substantial Presence Test. The key thing to remember is that your H1B status doesn't automatically make you a tax resident - it's all about days physically present in the US. For your first year filing, you'll need Form 1040NR (nonresident alien return). This is actually simpler in some ways because you only report US-source income. You won't need to report your foreign accounts immediately unless they generate US-source income. One thing that caught me off guard: make sure your employer withholding is correct for your status. Many payroll systems default to resident withholding, which can cause issues. I had to work with HR to adjust my W-4 for nonresident status in my first year. Also, keep detailed records of your entry/exit dates from the US - you'll need these to calculate your days for the Substantial Presence Test. I use a simple spreadsheet to track this. The transition from nonresident to resident filing can be tricky, so definitely consider getting professional help for at least your first couple years. The forms and rules are quite different between the two statuses.

One thing I haven't seen mentioned yet is the importance of understanding state tax implications alongside your federal tax residency status. I moved to Texas on H1B which was great since there's no state income tax, but many H1B holders end up in California, New York, or other high-tax states. State residency rules can be completely different from federal rules. Some states consider you a resident from day one if you move there for permanent employment (like California), while others have their own substantial presence tests. This means you could be a federal nonresident but a state resident in your first year, which creates a complex filing situation. Also, if you're planning to travel back to your home country during your first year, be strategic about timing. Those days outside the US don't count toward the substantial presence test, which could actually be beneficial if you're close to the threshold and want to remain a nonresident for that tax year. And here's something most people don't realize: if you become a US tax resident mid-year, you can often elect to be treated as a resident for the entire year if it's beneficial (called the "first year choice"). This can sometimes result in better tax treatment, especially if you have US tax credits available. Keep all your immigration documents - I-94, visa stamps, etc. You may need these when filing to prove your status and dates of presence.