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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The government gets reported things like your income and how much is withheld from your paychecks. But there are a lot of things it doesn’t know. It doesn’t know how much you gave to charity, doesn’t know if you spent money on a house, if you paid student loans, invested in an IRA, etc. So they only way you know is if you tell them.
That’s what “doing your taxes” is. You gather all the information, determine the EXACT amount you should have paid, and settle up. They way it functions you USUALLY get money back, but not always.
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