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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Tax “returns” are just records of the taxes you paid and why. You’re probably thinking of tax *refunds*.
Most people pay taxes throughout the year by having them automatically taken out of their paychecks (“withholding”). But the amount taken out of your paycheck is just an estimate. It may be too low (in which case you’ll owe money, though typically only a small percentage of the taxes you’ve already paid), or it may be too high (in which case you get money back from the IRS, since you overpaid them).
If you work a normal salaried job that gives a W2 (the usual form for most people’s income), you would have filled out a form answering some common questions used to estimate how much should be withheld for tax purposes.
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