Is Chris Rock right? if we pay income taxes every week why should we pay in April??

Answer 1

Individual taxpayers have Federal, State, Social Security, Medicare, and if applicable City Tax(Local Tax) withheld from their pay on a weekly, bi-weekly, bi-monthly, or monthly basis.

Social Security and Medicare Tax is withheld and put into a Federal Fund for your retirement. At retirement age you will receive a Social Security Check and part of it will apply to Medicare.

Congress passes or vetoes tax laws and these laws change every year, which is why individuals who prepare taxes have to study the new tax laws.

The reason an individual who files a 1040 Form would have to pay in April is because the individual did not have the correct amount withheld for Federal and/or State and/or City Tax. Another reason an individual would have to pay in April is because, for example, the individual is self-employed or a sub-contractor and did not pay quarterly estimated taxes (941 Forms).

The individual would receive a "1099-MISC" form, which is the1099 Miscellaneous form. The individual should know whether or not he or she is considered an employee or contracted by the company.

We pay due to Amendment 16 of the U.S. Constitution and it is collected and disbursed accordingly by U.S. Congress. This is why it is important to pay attention to any changes in tax laws or discussions regarding budget cuts. It is a very broad topic.

Answer 2

Well Chris Rock may be a funny comedian but obviously someone does his taxes so what does he know.

Your employer "withholds" taxes from your paycheck each week which counts towards your taxes in April (when they are due). If you withheld over the amount you owe then you get a check (a refund). If you took too little out then you might owe money.

If you are 1099'd you might not pay taxes all year and only in April (it's up to you to "withhold" your own taxes). If you are self employed you are required to file quarterly.

Answer 3

Youre right up to a point. Your paying taxes every week but If you dont pay enough then at the end of the year when you file your taxes that will be calculated and whatever you paid into it will be reduced and the rest is what you owe the govermnent and if you overpaid then the calculation will be in your favor getting you a refund check. If you never want to owe money to the IRS, always claim 0 on your w4.

Answer 4

Your withholdings on your paycheck are just an estimate of your liability.

For example: Let's say you owe me money. Unfortunately, I will not tell you what you owe me until early next year so you you give me $20 per week all year ($1040 total). At the end of the year, I tell you that your debt was only $900, so I give you $140 back. If, the other hand, it tell you that it is $1200, you would have to pay me another $160.

Answer 5

government runs on the foundation of decision of rather some taxes and spending the quantity of rather some welfare tasks ! there are rather some styles of taxes that a central authority imposes on people. The Tax you pay on your earnings is predicated on the earnings you derive out of your pastime, investment etc., people under specific earnings point do no longer pay any earnings Tax. yet while somebody buys something, they pay earnings tax, while somebody watches a action picture in a theatre they pay entertainment tax etc. As a to blame citizen of the rustic it is our accountability to pay such taxes so as that government can run and help to construct roads, bridges and supply scientific centers to the deserving .

Answer 6

We have income tax withheld from our paychecks, but we don't file our tax returns and submit them for refunds or pay the difference in what was withheld and what was owed until April.

Maybe I should see about writing his material for him.

Answer 7

If you pay enough in every paycheck to cover your tax liability, you don't pay in April - you only pay if you didn't pay in enough through the year. Many people overpay through the year - they get the extra refunded to them.

Answer 8

You have withholding stolen from your check each week. In April you file your tax return. There, you see how much the IRS wants to steal, deduct what you have already paid, then deduct any other items they allow you to get back. If you are lucky, you owe nothing and get nothing back. If you get a refund, then you paid too much in the first place and lost the ability to have earned interest on that money.

Of course when the FAIRTAX ACT H.R. 25 passes, you will have no income tax no withholding. Only a retail sales tax on new items only. check it out. www.fairtax.org
Frequently Asked Questions about the FairTax http://www.fairtax.org/fairtax/faqs.htm