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where does tax refund money come from?
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whatsinaname
Member
Where does the extra money you gave them during the year go? They just take it out from that place.
Maybe a basic account or maybe they invest in some bonds or something.
From you. A refund is exactly that.. "You paid use too much money during the year, have it back.. thanks for the free loan"
Skellig Gra
Member
They get it from the taxes you already paid. Think of it as change you get when breaking a 50 dollar bill.
They create it out of thin air, just like any other money they spend.
oh i see... so its basically like they take money from you and at the end of the year they give back the money they didnt spend to us?
and thats another thing im curious on, why do some people have to pay if they are giving money back?
No they only give money back that you never owed them in the first place.
....so whats the point of taking it from us?
Do you like roads?
whatsinaname
Member
Imagine you have to pay $1000 in tax per year.
Some people pay $100 once a month. At the end of the year they have overpaid $200 and they get that back.
Some people pay $50 once a month. At the end of the year they have underpaid by $400 and they have to pay that to the government.
RustyNails
Member
It is created out of thin air. I'm not kidding.
Welcome to taxes.
You like all that public infrastructure and those government services? Where do you think they come from?
cheststrongwell
my cake, fuck off
Well, when two people really love someone...
Edit: Fuck, I meant to say each other. Joke fucking ruined.
Edit: Fuck, I meant to say each other. Joke fucking ruined.
...they become married for tax benefits.
Jazzy Network
Member
Because it is nearly impossible to calculate exactly how much tax you have to pay based on your income, tax deductable spending, etc while it's happening. So you do it after the year ends. If the IRS deems you paid too much, you get the remaining back. If they deemed you didn't pay enough, you have to pay it.
mhm.... so is the amount we have to pay based on our income?
Just curious...how old are you?
In laymans terms, you have taxes taken out every paycheck and then every year, you do a tax return to show what you "should" owe, and you get a refund if the amount of taxes taken out of your check is greater than what you owe. Its possible to actually OWE money to the government at tax time (not enough taxes taken out of your paycheck through out the year)
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OfWhiteSkinOnRedLeather
Member
lol It always makes me laugh when people start off with, "Just curious..."
gwynplaine
Banned
man a tax accountant can explain it so much better and i'm not american but from my experience just as a guy who pays taxes...
-you did your taxes wrong
-payroll - start a job halfway into the year at $20 / hour. your income taxes would be subtracted based on the annual taxation rate... but annually you don't have enough to make it to the next tax bracket so you get a lot back
-deductions - those you put in at the end of the year. so they've been taxing you at x% rate but your deductions allow you to be taxed at less than x% rate so you get more back
most people work jobs and they take it from you at payroll. i don't know why but that's the way it works
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Manmademan
Member
hard to believe anyone who has gotten a paystub doesn't know the answer to that question.
How many tax returns have you filed in the last 6 years?
whatsinaname
Member
I think this thread is a few levels of complexity below what you are talking about.
Jazzy Network
Member
I didn't learn it in school. Had to teach myself and/or learned bits and pieces from my parents, etc.
TunaMarshmallow
Member
My understanding is this:
- During the year, depending on your positioning in last year's Reaping, a certain amount of money is taken from your cheque and/or parents during the year.
- That money is split between President Obama and the Federal Reserve -- they spend it on everything from important business, to roads, to the chef who works at the White House, to the NSA spying program. It is also used to print more money so that we don't run out.
- If this all goes well, there will be some left over. Normally it winds up being just a bit, but sometimes it can be as much as $100,000. This amount is called the "Tax Rebate Fund for U.S. Americans."
- The current year's Reaping is held. Your average position in last year's Reaping and the current year's Reaping determines how much money you get back. Also, if anything bad happened to you during the year -- e.g,. you got fired, your kids got very sick -- you can get a bit extra if you report it to the President before the Reaping.
- During the year, depending on your positioning in last year's Reaping, a certain amount of money is taken from your cheque and/or parents during the year.
- That money is split between President Obama and the Federal Reserve -- they spend it on everything from important business, to roads, to the chef who works at the White House, to the NSA spying program. It is also used to print more money so that we don't run out.
- If this all goes well, there will be some left over. Normally it winds up being just a bit, but sometimes it can be as much as $100,000. This amount is called the "Tax Rebate Fund for U.S. Americans."
- The current year's Reaping is held. Your average position in last year's Reaping and the current year's Reaping determines how much money you get back. Also, if anything bad happened to you during the year -- e.g,. you got fired, your kids got very sick -- you can get a bit extra if you report it to the President before the Reaping.
That's a good point...I just thought this was common knowledge.
RustyNails
Member
Yeah even my response few posts above is a little too complex for this thread. Lol. Babbys first tax.
If they were in a 6 year college, the parent's can still claim them as a dependant as long as they are under 24 and a full time student
edit: Also, the need to claim same residency as parents, and their part time job (if any) only provides less than 1/2 of their own support
4 including this year but i went to some corner tax office to do it for me and they never explain this crap to me. they were more interested in how much im getting. plus i never really cared until now when i filled myself with turbo tax.
Joe Shlabotnik
Banned
Because that's easier to account for in a budget than owing some number of thousands of dollars once a year.
Polishin8r
Member
speaking of taxes are you supposed to pay tax on a bonus?
XiaNaphryz
LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
Personal finance classes aren't mandatory anywhere in the US at any education level (unless you major in something related to it in university I guess).
SlipperySlope
Banned
Yeah, contractors have to be really careful.
Jazzy Network
Member
Yes. It gets taxed more than normal salary.
Whew, for a second there I was guessing 1. No need to turn yourself into the IRS yet.
Noisy Ninj4
Member
Almost any income (money earned or gained through investments) is taxable. Some types are taxed at different rates though.
The federal reserve is not, despite the name, a savings account where our taxes go to build up for a rainy day. It's just a central bank that regulates the currency to keep inflation in check and promote economic growth.
If they find out, hell yeah they'll bother him.
TunaMarshmallow
Member
OK, but President Obama is where the other half goes, right?
(How... could ... you think I was serious?)
XiaNaphryz
LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
Which really, really sucks. I got a $30k bonus at the end of 2012 and pretty much ended up with only half of it after taxes.
thats one thing that bothered me about america's tax economy (or whatever you wanna call it). the rich is protected while the middle class has to dump their wallets. thats soooo ass backwards
Jazzy Network
Member
If they find out, he might literally get his door knocked down. They don't play games when you owe money.
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