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

Its like when you go to Starbucks and buy a venti mocha cappuccino and its $4.65. You pay with a $5 bill and you get $0.45 back. That is your refund.

In the tax situation, the $5.00 is the taxes that you have paid during they year, plus tax credits or other tax benefits, and the $4.65 is the actual taxes that you owed.

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