4 Tax payments in a year?

Question

We file a return.
We pay tax fees in 4 sets in a year for the tax we have filed.
We get tax return.
This return is always less than the sum of tax fees we pay in the year.

I dont understand why should we file a tax when we get lesser return.

Can someone explain me the need of each step as you would do to a common man?

Thanks Judy.
Consider an employee.
But can u tell me how can we check how much of our taxes is deducted from our pay cheques?
Is there any detail of pay slip we should note for this ??? or
should it be calculated like [gross income - (num of pay cheques in a year) * (amount of pay cheques)]

Answer 1

You pay in estimated tax amounts 4 times a year if you are self-employed, or it's withheld from your paychecks if you are an employee.

At the end of the year, you prepare a tax return to determine exactly how much you owe for the year. If you paid in too much, you get a refund. If you didn't pay in enough, then you have to pay the rest of what you owe instead of getting a refund.

A refund is like getting change at the store when you make a purchase if you give them a bill bigger than the cost of your items. You didn't really think that you got all your tax back, did you? Then you wouldn't be paying any tax.

Answer 2

If you are self-employed you are paying Estimated Taxes. This is the amount you estimate you may owe at the end of your Tax year. If you are overpaying considerably, then reduce that amount.

For individuals, you can go to www.irs.gov, individual, and withholding calculator, this will give you as an individual an approximate tax due each year and you can adjust your withholding accordingly.

If you are a student attempting to understand taxes better, the irs has some cool stuff really

http://www.irs.gov/app/understandingTaxes/servlet/IWT1L1ol

Answer 3

THE 4 PAYMENTS ARE ESTIMATED TAX PAYMENTS