You get credit for your federal withholding on your tax return. If you income is low enough, you may get it all back. If this number is higher than your liability, you will get a partial refund of this number. If this number is lower than your liability, you will owe.
2007-11-13 09:08:09
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answer #1
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answered by Wayne Z 7
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Darth's statement that a refund is taxed a second time when you get it back is correct for state and local taxes IF YOU ITEMIZED FOR THE PREVIOUS YEAR AND DEDUCTED THE STATE AND LOCAL TAXES - otherwise your refund is not reported on your tax return, or taxed. Federal taxes aren't deducted in the first place, so a refund of federal taxes is not taxed again.
2007-11-13 13:49:55
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answer #2
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answered by Judy 7
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The part you are referring to is the amount your employer withholds from your check. This amount is not what you get back on your tax return, it is what is paid to the federal government out of your paycheck. It is hard to say what you will get back until you do your taxes early next year.
2007-11-13 09:08:00
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answer #3
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answered by ctleng76 5
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Federal withholding is like a "prepayment" toward your likely tax burden.
When you file your federal tax return, you calculate how much tax you owe, then subtract the "withholding" amount. If you have paid in more than you owe, you get the overpayment back as your tax refund.
If you paid in less than you owe, you must send in a check for the remaining taxes you owe when you file your tax return.
2007-11-13 09:06:48
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answer #4
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answered by Jesse R 4
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Darth could be correct if her is talking about state taxes. Any refund from the state is taxable next year. Federal refunds are not taxable.
2007-11-13 09:44:32
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answer #5
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answered by nystom 2
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You'll want to set it up so that you get the smallest tax return check as possible, if not owing money. The money you get back is taxed a 2nd time so you'll save money by not getting it returned.
2007-11-13 09:15:29
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answer #6
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answered by Darth Scorn 5
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i dont know
2007-11-13 09:07:38
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answer #7
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answered by Anonymous
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