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.
In: 8
You owe taxes based on your total income from everything for the year (and the amount you owe is based on how much you earn). The government “helps” you by taking a percentage from your paycheck.
At the end of the year, you “settle up” by filing your tax return. This is where you report everything (including what was taken from your paychecks), and either:
– you owe taxes because you didn’t have enough paid in all year
– you get a tax refund because you had too much taken out of your paycheck
Most tax pros believe you should shoot for even – meaning you don’t owe or get a refund. But that’s really hard to do because of all the different income sources people have, tax brackets, tax credits, etc.
Latest Answers