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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.
What else can I help you with?
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.
Can you deduct property taxes in California on your tax return?
Yes, you can deduct property taxes in California on your tax return.
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.
How can I deduct property taxes in California on my tax return?
To deduct property taxes in California on your tax return, you can itemize your deductions on Schedule A of your federal tax return. Include the amount of property taxes paid on your California property in the "Taxes You Paid" section. Be sure to keep records of your property tax payments for documentation.
What happens if no federal taxes are taken out of my paycheck?
If no federal taxes are taken out of your paycheck, you may owe a large amount of money to the government when you file your tax return. It is important to ensure that the correct amount of taxes are withheld from your paycheck to avoid penalties and interest.
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 I deduct taxes paid for the previous year on my tax return?
Yes, you can deduct taxes paid for the previous year on your tax return if you itemize your deductions.
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
