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tax refunds

so my dad recently told me that if you make over a certain amount you OWE during tax season, which i never knew before and when i asked him he treated me like i was stupid (he always does when i ask questions he doesnt REALLY know the answer to but hes my dad and i love him anyway)... he just said 'well who do you think pays for police men and fire men.' and i said '..our taxes..' but i always thought it was what they took out of your check every month and you only got a portion back in april and you only had to pay if you were bad and got caught cheating.... so can someone explain the tax system and tell me how much you have to make in order to owe?

 
aliciatron

Asked by aliciatron at 2:51 AM on Feb. 8, 2009 in Money & Work

Level 2 (6 Credits)
This question is closed.
Answers (15)
  • Hopefully i can celar this up a little bit, if you claim 0 on your w-2 then you are taxed at a higher rate on your paychecks, if you claim say 3 (you, hubby and a child) you are taxed at a lower rate.

    when you file your taxes depending on how you file married joint, single, etc that determines only part of your tax bracket then it goes to how much you make, you are only taxed on your earnings after your deductions so you get a deduction for you, spouse, children, a home if you own it, childcare, etc. subtract that from your earnings then you have your taxable amount.

    you may even qualify for the EIC which would mean you are getting somethng back.
    The only way you would owe taxes honestly is if you didnt pay any at all out of your check or you claimed 12 on your w-2 and only have a family of 3. I am not sure what your dad is talking about sounds like misinformation.
    3_ring_circus_

    Answer by 3_ring_circus_ at 3:04 AM on Feb. 8, 2009

  • it depends on what you claim on your W-4 im pretty sure.. if you claim a higher percentage they take more out of your paychecks and in time when you file your taxes you get MORE back.. and if you claim like zero on your W-4 you may have to owe...

    im pretty sure that is how it works. i dont think how much you make that year is based on owing or not.. im pretty sure it is what you claim on your W-4 i may be wrong though.
    MomNbabyGirl009

    Answer by MomNbabyGirl009 at 2:53 AM on Feb. 8, 2009

  • thanks i dont know either :]
    aliciatron

    Answer by aliciatron at 2:54 AM on Feb. 8, 2009

  • i wanted to mention also that h&r block has a free tax estimator you can use to get an idea if your really worried.

    State taxes are different in every state, here in oregon if youmake over 50,000 you are taxed at 10% for anything over the 50 grand so many end up owning state taxes but normally you can use your federal refund to pay for them when you get it back.
    3_ring_circus_

    Answer by 3_ring_circus_ at 3:05 AM on Feb. 8, 2009

  • thanks!!!! i didnt think that was the case but its what he told me and hes my dad so i believed him!
    aliciatron

    Answer by aliciatron at 3:06 AM on Feb. 8, 2009

  • aaaah maybe he did mean state taxes, we live in CA and him and my mom both made $80,000 a year each, but now hes retired. maybe it was just miscommunication
    aliciatron

    Answer by aliciatron at 3:08 AM on Feb. 8, 2009

  • Ohhh i used to live in ca and we always got money back but im hearing that people are owing this year that normally get it back or if they get a refund they are getting letters that they wont get their money for awhile.

    there are alot of problems with CA state taxes this year from what family is telling me.
    3_ring_circus_

    Answer by 3_ring_circus_ at 3:10 AM on Feb. 8, 2009

  • yeah CA has no money! although hes been retired for a year and a half so he was probably drawing on experiences from 2007 or 2006 returns, but i dont really know.
    aliciatron

    Answer by aliciatron at 3:13 AM on Feb. 8, 2009

  • You can actually owe the IRS, my FIL usually has to pay taxes come April. By himself he makes 6 figures a year, plus his wife's salary as a teacher.
    LolosMom

    Answer by LolosMom at 3:36 AM on Feb. 8, 2009

  • my dad always had a lot of stock too, maybe thats why he would owe. but i understand now, thanks :]
    aliciatron

    Answer by aliciatron at 3:42 AM on Feb. 8, 2009