in addition to what the federal and state already take out, i have my work taking out an additional 15.00 state and 15.00 federal. does the additional money i have them taking out of my check get taxed at the end of the year when i go to file my return?
i file single with no dependants if that matters
2007-11-03 16:38:37 · 4 answers · asked by tish 2 in Business & Finance ➔ Personal Finance
The money you make, before taxes are taken out, is shown on your W-2 and taxed at the end of the year. But if you are overpaying by getting extra taken out, you'll get it back as a refund when you file your return.
Sarge isn't correct by the way about a refund being taxed. A federal refund is not taxed the following year. A state or local refund is only taxed if you itemized the previous year and deducted it then.
2007-11-03 17:07:50 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
When you file at the end of the year, you will get credit for paying that additional tax so your refund will be that much bigger (or you would owe that much less)
2007-11-03 16:42:29 · answer #2 · answered by Oliver1010 3 · 0⤊ 0⤋
If you get a refund at the end of this tax year, you must show it next tax year. It is considered income.
single and no dependents means you are in the highest tax bracket for your income group.
2007-11-03 16:56:30 · answer #3 · answered by Sarge1572 5 · 0⤊ 1⤋
No, extra withholding does not get taxed. All you are doing is using the government as a savings account.
Financially, this is not a good idea as they do not pay interest, and if you need your "savings" before year end, you can't access the money.
You would be wiser to put it in a savings account.
2007-11-03 16:57:11 · answer #4 · answered by Gem 7 · 0⤊ 1⤋