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This question is fairly ambiguous, not only because of the vague nature of the question, but also due to the complex nature of the answer.
First off, the simple answer is that all Americans pay taxes. It is a part of life, and you cannot (legally) avoid it.
The question becomes more complex if you are referring to why deductions are made on your tax return. Deductions exist in the tax code to promote certain behaviors.
Not every dime that you earn should be taxed, depending on how it is spent. For example, if you are immediately spending your money on an education, it makes sense to deduct those amounts from your income in order to promote the act of getting an education. On the other hand if you use your money to buy a yacht, you will likely have to pay fairly heavy taxes.
There are an enormous number of things that you can do to "shelter" your income from taxes, and most of them exist due to the whims of congress. If you want to gain a complete understanding of your tax return, then there is an enormous amount of literature provided by the IRS describing all aspects of the tax code.
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How much money is taken out of your check for taxes?
When you have the check in your hand you do not have any more taxes taken out of that check amount until you file your income tax return after the end of the tax year and the amount is included in all of your other gross worldwide income on your income tax return.
Do you owe taxes if no federal was taken out?
This is possible but you will not know until you have completed your income tax return correctly.
Do you send a copy of your Calif state taxes with federal taxes?
No you do not send a copy of the state income tax return with the federal income tax return.
Can federal taxes withheld be tax deductible?
You cannot deduct withheld federal taxes on your federal income tax return. There are some states that allow the deduction of withheld federal taxes on the state income tax return.
How do you claim this deduction on your taxes?
THIS DEDUCTION ON YOUR TAXES will have to entered on the correct form or line of your 1040 federal income tax return before your income tax return can be completed correctly.
do have to file a florida tax return?
i have a w2 with florida taxes taken out,do i fle this with florida
How much money is taken out of your check for taxes?
When you have the check in your hand you do not have any more taxes taken out of that check amount until you file your income tax return after the end of the tax year and the amount is included in all of your other gross worldwide income on your income tax return.
Do you owe taxes if no federal was taken out?
This is possible but you will not know until you have completed your income tax return correctly.
Would I need a tax return estimator when I have my taxes done?
You do not need a tax return estimator when you have your taxes done. You need to have it before you get the taxes done so you will know what the taxes will be when you have to pay them.
When you pay more than you owe in taxes and the IRS gives you money backwhat is that money called?
A tax refund or tax rebate is a refund on taxes. When your tax liability (the amount of tax you owe) is less than the amount of taxes paid or taken out of your paycheck, the IRS will give you a tax refund once your return is filed.
Do you send a copy of your Calif state taxes with federal taxes?
No you do not send a copy of the state income tax return with the federal income tax return.
Can federal taxes withheld be tax deductible?
You cannot deduct withheld federal taxes on your federal income tax return. There are some states that allow the deduction of withheld federal taxes on the state income tax return.
What types of taxes paid are not allowable deductions on your tax return?
Federal income taxes are not deductible on your federal or state income tax return. http://small-business-tax-info.com
What is the difference between direct and indirect taxes?
A direct tax is one that is taken directly from the individual, such as income tax. Indirect taxes, such as sales tax, are collected by merchants and taken from the consumer. Indirect taxes also lead to inequalities while direct taxes do not.
How to get a small business tax refund when no taxes were taken out?
You can't get a tax refund if no taxes were deducted for the year in question.
How do you claim this deduction on your taxes?
THIS DEDUCTION ON YOUR TAXES will have to entered on the correct form or line of your 1040 federal income tax return before your income tax return can be completed correctly.
Can you count your tax payment from a previous year's taxes on the current tax form?
If you are talking about your amount paid with your federal tax return, the answer is no. You cannot deduct your previous years federal income tax on your current years tax return. You can deduct on Schedule A the amount paid on your State income tax return if you itemize your taxes.
