What are tax returns, how much do we receive back?

Question

I'm told at the end of the year I get money back for taxes...What is that all about... I've been working one of my first jobs and I remember when I asked my manager why does it matter to file 0 or 1...

Answer 1

basically you have:

INCOME(all sources)
-
STANDARD DEDUCTION( based on filing status)
-
PERSOANL EXMPTION( # of poeple claiming...you+kids ect..)
=
YOUR TAXABLE INCOME ( look this up in tax table)

this ia tax owed on income for current year
NEXT SEE WHAT YOU HAVE PAID IN AND SUBTRACT WHAT YOU OWE. DO YOU GET A REFUND OR DID YOU NOT PAY ENOUGH THROUGH THE YEAR? THAT'S KINDA HOW IT WORKS BUT THERE'S CREIDITS AND OTHER THINGS TO ACCOUNT FOR. THIS FORMULA IS NOT ACCOUNTING FOR ANY CREDITS. JUST YOUR BASIC 1040EZ FEDERAL TAX FORM

what is meant by claiming 1 or 0 on your I-9 form......
is really how do you want to be taxed throughtout the year?
IF 0 higher tax rate ( less weelky more at end of year)
IF 1 lower tax rate (more weekly less maybe even owe at end of year)

Answer 2

It matters a great deal whether you claim 1 allowance or 0 on the W-4, especially if you can be claimed as a dependant of another person. If you can, you should claim 0 and you will get a small refund. If you are in a full-time job you probably can't be claimed as a dependant, in which case it is safe to claim 1. Again, if your only income is from your job (and if you know your dependency status) you can file your return easily and (probably) for free. Just go to www.irs.gov once you get your W-2 and click on the Free File icon. Select a provider which offers free filing in your circumstances. Be careful though. Some will file federal for free and then charge you for the state.

Answer 3

Tax returns are based on income reported, interest earned in savings, checking, stocks and other financial items that pay you money. All these items must be figures into your tax return. You appear to be young (hint - first job) so let me explain. Single people pay the most taxes usually. The government requires a certain amount be held out of your paycheck to cover federal tax, fica and medicare, and state tax if your state has it. some dont. If you are married you and your spouse pay a certain amount based on income, # of children etc. If your taxes paid are less than what they actually take from you then you are due a refund. If you claim1 as opposed to 0 then your employer takes less out. More for 0. If you pay too much tax they send a refund, if you did not pay enough you owe money to the government. So dont alway count on getting a refund. P.S. You have to file paperwork and send to IRS if you want that refund. They dont just send it to you. FYI

Answer 4

if you pay in taxes, and you are if u r working, yes you may get some money back...it depends on how much is being held out each payday, and how much deductions you have, please speak to a knowl;edable adult about it, its important that you claim right and file correctly...VERY IMportant!!!!