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Will adding more allowances on Form W-4 increase or decrease your taxable income?


Allowances for things like dependents and head of household can greatly affect your taxable income.

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Which of the following can a healthcare flexible spending account help pay for?


You can use your flexible spending account (FSA) to pay for medical expenses not covered by your insurance. Check with your healthcare provider to get full details on what services and items are FSA eligible.

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Key Takeaways

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When you get your paycheck, you’ll see more on the stub than just your earnings. Learn what gets taken out of your gross pay and why pre-tax benefits can make a big financial difference.

  • A progressive tax system means that different amounts of your income are taxed at different rates
  • Check to see if your employer matches contributions to your retirement plan. If they do, boost the amount you invest to get the most out of the opportunity
  • Be sure to include transportation costs like parking and your subway pass, as part of your pre-tax deductions if your employer offers that benefit. These expenses may be automatically deducted from your paycheck
  • 401(K) accounts are tax deferred, meaning you won’t currently pay taxes on you contributions or earnings in the account. However, once you reach a certain age or are ready to use the money, you will have to pay on both your contributions and any earnings
  • Life events can greatly change your tax bill. For example, having a child means your taxable income may be reduced by dependent exemptions, child care credits and other deductions