Friday, April 10, 2009

How does the government give tax returns?

Every year the government takes out income taxes for every individual in the nation. Why do they give back some of the taxes? How do they determine this?


Refunds are money that is paid back to the Taxpayer for the amounts that were over withheld from their paychecks or Estimated payment. Withholding the taxes based on gross earnings on what the employee instructed the Employer to withhold by the W4 the employee completes.

You must be from another planet. Every year, thousands of Americans file income tax returns - that is, they tell the government what they earned, what taxes they paid, what credits or exemptions they are entitled to, etc., and then the government reviews them and, if it agrees with their numbers, sends them a check for what they overpaid, or a bill for what balance they still owe, if they did not send it along with the tax return.

They use complicated formulas and some people overpay.

example ok , on my withholdings (w-4) I put zero ..mmkayy

by putting the zero on my w-4 they take the maximum amount of taxes out of my check , mmmkayy .....as not to under pay the government....and have to pay them..... mmkayy

I have myself,and three children , I claim us at the end of the year therefor I get a refund because I overpaid for someone with my status...mmkaayyy the govt. does not just give you money, it is money I paid in mmkkaayy...

When you file at your job you have the choice of claiming 0 or 1. The difference here is how much money is taken out of your check for taxes. By claiming zero, you pay more money out of every check. By claiming one, you pay less money out of every check. The amount of taxes one owes the government and state is determined by how much money they made in one fiscal year. If what you put in is more than the bracket you fall into, you'll get some money back. If it is less, you will likely end up owing money.

Personally, I claim zero. Every year I get some money back because I paid too much money in. If I claimed one, I would take the risk of possibly owing money, as i may not have paid enough in.

If you make less than $8,450 a year, you actually get back every penny you paid into the Federal Government because you made such a low amount of money, they return all the taxes you paid.

I hope this helps!

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