when ur credit card is gettin taking out of ur check after taxes dose that mean i have to owe the IRS when i file my taxes at the end of the yr?
2006-11-22 03:29:12 · 3 answers · asked by kate c 1 in Business & Finance ➔ Taxes ➔ United States
You will owe the IRS based on the amount of deductions and credits they give you off your gross income. Paying off a credit card does not mean a thing, even if it is comes from your paycheck. Although, if some of those charges are deductible, such as medical, educational expenses (paying for a child to attend) home improvements such as buying insulation for your attic to better improve the heating and cooling costs of your home, these such items are deducted when you itemize your taxes rather than just taking the standard deductions.
2006-11-22 06:39:34 · answer #1 · answered by perleo 3 · 0⤊ 0⤋
Your taxes are calculated on your income BEFORE any after-tax deductions from your paycheck. You want to be sure to have enough taken out of your paycheck for withholding so you don't owe a big tax bill, and possible interest and penalties, when you file your return.
2006-11-22 12:09:50 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Not specifically because of the credit card. Because the funds are coming out after tax, you have paid your percentage of taxes to the IRS.
Its a whole other story if you are not having enough money withheld from your pay.
2006-11-22 12:03:38 · answer #3 · answered by nova_queen_28 7 · 0⤊ 0⤋