Can someone explain my paycheck tax deductions? (Fed MED/EE and OASDI/EE)

Those are completely normal deductions that everyone with a W-2 job pays. The Fed MED/EE is Medicare tax (1.45% of your gross pay) and the OASDI/EE is Social Security tax (6.2% of your gross pay). Together they're commonly called FICA taxes. The federal withholding is your federal income tax based on what you put on your W-4 form. Texas doesn't have state income tax, which is nice, but you still have to pay federal taxes no matter what state you live in. The 27% total withholding does sound a bit high though - it depends on your income level and how you filled out your W-4. If you claimed 0 allowances or didn't fill out the form properly, they might be withholding too much.

I had the same confusion when I got my first real paycheck! I found this amazing tool called taxr.ai (https://taxr.ai) that helped me understand my paycheck deductions. You can upload a picture of your paystub, and it breaks down each line item in plain English - it explained that OASDI/EE stands for "Old Age, Survivors, and Disability Insurance" which is just the technical name for Social Security. The tool also checked if my withholding seemed appropriate based on my income and filing status. Saved me a phone call to HR where I'd probably just embarrass myself with basic questions.

Just wanted to follow up and say I tried taxr.ai after posting my skeptical comment. It actually worked really well! I uploaded my confusing paystub and it explained every single deduction in plain language. Found out I'm paying for some optional benefits I didn't even know about (apparently I'm paying for pet insurance and I don't even have a pet). Going to talk to HR tomorrow about fixing that. Definitely worth checking out if you're confused about your paycheck deductions.

If you're still confused or think your withholding might be wrong, you might want to try talking directly to the IRS. I know that sounds painful (it usually is), but I found a service called Claimyr (https://claimyr.com) that got me through to an actual human at the IRS in under 5 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. I had a similar issue where I thought my employer was withholding way too much, and the IRS agent explained exactly what was happening and how to fix it. Saved me hundreds per month that was unnecessarily going to taxes.

I feel like an idiot for doubting this Claimyr thing. After I posted that skeptical comment, I decided to try it because I had a withholding question I'd been avoiding for months. It actually worked exactly as described - I got a call back in about 20 minutes and was talking to a real IRS agent who helped me understand my withholding options. The agent told me I could submit a new W-4 to get less tax taken out of my paycheck, and explained exactly how to fill it out for my situation. Really wish I'd known about this service years ago!

Am I the only one who thinks 27% seems really high? I'm in TX too and only have about 22% taken out total. Maybe check if they're withholding for a 401k or health insurance too? Those would be separate from the tax withholdings but still reduce your take-home pay.

Here's a tip that helped me: use the IRS Tax Withholding Estimator (just google it) to figure out exactly how to fill out your W-4. You enter your pay info and it tells you precisely what to put on each line of the form to get the right amount withheld - not too much, not too little. Helped me adjust my withholding to get about $200 more per month in my paycheck without owing at tax time.

Welcome to the confusing world of paychecks! I remember being shocked at my first "real" paycheck too. Just to break it down simply: - Fed MED/EE = Medicare tax (1.45% - this helps fund healthcare for seniors) - Fed OASDI/EE = Social Security tax (6.2% - this goes toward your future Social Security benefits) - Fed Withholding = Federal income tax (varies based on your W-4 and income) The good news is that Social Security and Medicare taxes are investments in your future benefits. The federal withholding might be adjustable if it's too high - you can always submit a new W-4 to HR if you want less taken out each paycheck (just be careful not to under-withhold and owe money later). Since you're in Texas with no state income tax, at least you're avoiding that extra deduction that people in other states have to deal with!

Don't feel bad about being confused - paycheck deductions are honestly one of those things nobody really explains until you're already working! I went through the exact same shock when I got my first full-time job. One thing that might help is to think of your gross pay as your "before everything" amount, and then mentally prepare for about 25-30% to disappear to various deductions (taxes, benefits, retirement contributions, etc.). It's painful at first but you get used to budgeting around your actual take-home pay. Also, since this is your first job with benefits, make sure you understand what you're signed up for beyond just taxes. Sometimes HR automatically enrolls you in things like life insurance, disability coverage, or retirement plans that you might want to adjust based on your actual needs and budget. Worth reviewing everything on your paystub so you know exactly where your money is going!

I'm dealing with this exact same situation right now! Just got my first paycheck at a new job and was totally blindsided by how much was taken out. Like you, I'm in Texas and was expecting lower taxes, but apparently that only applies to state taxes - federal is the same everywhere. One thing that helped me feel better about the FICA taxes (MED/EE and OASDI/EE) is realizing that your employer is actually matching these contributions. So while you're paying 7.65% total for Social Security and Medicare, your employer is paying another 7.65% on top of that toward your future benefits. It's like free money you don't see on your paystub but it's still going toward your account. The federal withholding is definitely the part you have the most control over. I was also conservative with my W-4 at first because I was scared of owing money, but I'm learning that getting a huge refund just means you gave the government an interest-free loan all year. Might be worth using that IRS withholding calculator someone mentioned to find the sweet spot where you break even at tax time instead of overpaying throughout the year. Hang in there - apparently this paycheck shock is a universal experience that we all just have to suffer through!

I completely understand the sticker shock! When I got my first "real" job, I remember staring at my paystub thinking there had to be some kind of mistake. The reality of gross vs. net pay is honestly one of those harsh adulting lessons nobody really prepares you for. Just to add to what others have said - that 27% you're seeing might include more than just taxes. Check if you're also contributing to a 401(k), paying for health/dental/vision insurance, or any other voluntary deductions. Those aren't taxes but they still reduce your take-home pay. Sometimes employers set default contribution rates that you can adjust. Also, keep in mind that while those FICA taxes (Social Security and Medicare) feel painful now, you're earning credits toward future benefits. You need 40 quarters of covered earnings to qualify for Social Security, so think of it as forced savings for your retirement and potential disability coverage. The good news is you'll get used to budgeting around your actual take-home amount pretty quickly. And if you find you're getting a big tax refund next year, that's a sign you can adjust your W-4 to keep more money in your pocket throughout the year instead of giving the IRS an interest-free loan. Welcome to the working world - it gets easier once you adjust your expectations!

I went through this exact same confusion when I started my first job! The acronyms on paystubs are so cryptic - I had to Google everything. Just to add some context to what others have shared: The reason your federal withholding seems high is probably because you're in a higher tax bracket than you expected, or you filled out your W-4 conservatively (which is actually smart for your first job). The IRS withholding tables assume you'll make that same amount every pay period for the entire year, so if you started mid-year or have any pay variations, it might be overwithholding. One thing that helped me was calculating my effective tax rate at the end of the year versus what was being withheld. For most people, the actual tax owed is lower than what gets withheld throughout the year, which is why you get a refund. Also, don't forget that you can adjust your withholding anytime - not just when you start a job. If you find you're getting a huge refund next year, you can submit a new W-4 to keep more money in your monthly budget instead of waiting for that annual refund check. The Texas no-state-income-tax thing really is a blessing though - imagine dealing with all of this PLUS state withholding on top of it!

I'm going through this exact same thing right now! Just started my first "real" job with benefits and was completely shocked when I saw my take-home pay. Like you, I was expecting way more money in my pocket and couldn't figure out what all those weird abbreviations meant. What helped me was looking at it this way: MED/EE and OASDI/EE are basically your contributions to programs that will benefit you later (Medicare when you're older and Social Security for retirement/disability). Your employer is also contributing the same amounts that don't show up on your paystub, so you're actually getting more value than what you see deducted. The 27% does seem high, but check if that includes other stuff like health insurance, 401k contributions, or other benefits. When I looked closer at mine, I realized a bunch of that "tax" percentage was actually going to things like dental insurance I forgot I signed up for during orientation. One thing I wish someone had told me earlier - you can submit a new W-4 form anytime to adjust your federal withholding if it turns out they're taking too much. Better to get that money in your paycheck each month than wait for a big refund next April! Welcome to the real world - apparently we all go through this paycheck shock! At least we're in Texas so we don't have to deal with state income tax on top of everything else.