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
The government takes money out of each paycheck based on what they think you’re going to owe each year. If you just have regular income and don’t have any major deductions, then the amount they withhold from each check will be pretty accurate. But if you have other forms of income (or if your income is variable from check to check) or a lot of big deductions then it’ll be off. The point of filling a tax return is reconcile what the govt took throughout the year with what you actually owe, and either pay or get a refund for the difference.
If you’ve just started working, you probably don’t need an accountant. Try the IRS Free File option first. If that spits out a huge payment or refund, then get somebody to check it over for you.
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