exactly how do tax refunds work?

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I’ve only recently joined the working force, and I am still not sure of this entire concept.

I know I am supposed to go to an accountant and show him a slip from my job for the returns, and also slips from my stocks that show all the net changes.

What I don’t understand is \*why\* I receive a certain amount after doing all of that.

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27 Answers

Anonymous 0 Comments

You loaned the government interest free money and they are paying it back because you over paid.

Most people think “hell yeah, I get a refund.”. That is flawed. You want to pay taxes at the end of the year. That means you took home every cent you earned and have to pay then what you owe instead of loaning them money that you could put in a savings account and earned interest for yourself.

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