i always see so many people talk about tax returns or tax season around this time and its so confusing. to me it seems like free money
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When you set up your W-2 when you start a job, you get the option to set a number of dependants. Based on the number of dependants you say, an estimated amount of tax is taken from each paycheck. At the end of the year, when you file your taxes, a more accurate count is made including deductions (things that the government wants to encourage, such as donations to charity, education, etc.). This causes a difference between what you paid throughout the year and your year end calculation, causing you to either be owed money, or owe money.
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