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Why do some people have to pay taxes while others don't?

Well, everyone pays them upfront, but some people get all their taxes back at the end of the year (and sometimes even more than they paid in) while others have to pay taxes?

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Asked by Anonymous at 1:20 PM on Feb. 15, 2010 in Just for Fun

Answers (5)
  • It all depends on how many children you have, If you have a house. How much you are having taken out. Your income, if you are under the amount they say your family should make you get a very little back. You income alone can make a difference too.

    Answer by Anonymous at 1:22 PM on Feb. 15, 2010

  • Some of it also depends on how many dependents you claim versus how many you actually have (some people purposely claim less so they will get some money back on taxes - I used to claim less so I didn't have to pay as much). Plus if you have any capital gains on any investments you have to pay on those, because the taxes aren't taken out at the time, or if you get an inheritance, etc.

    Answer by missanc at 1:28 PM on Feb. 15, 2010

  • I have always received a refund when filing federal taxes, but then I also pay more in then I have to during the year to make sure I don't have to pay at the end of the year. But some people have to pay at the end of the year if they have things like interest from accounts and other investments, business income they didn't pay during the year, if they are self-employed and didn't pay enough quarterly, if they didn't take out enough during the year, and more. And of course the amount of taxes you need to pay is based on your taxable income.

    Answer by kuriequinn at 1:31 PM on Feb. 15, 2010

  • Because poor people don't pay taxes. If you make under a certain amount each year, you get all your taxes back. If you make a lot of money, you pay a lot. It's called your 'tax bracket.' The higher your 'tax bracket' the more you pay. That is why people have write-offs, because they're basically subtracting money to make their income look lower and be in a lower tax bracket. Certain people in low brackets pay nothing and so get big returns every year. They're basically getting all the money they paid in taxes back.

    Answer by danielp at 6:44 PM on Feb. 15, 2010

  • It all depends on their income, their exemptions, their income credits (if any), and their allowances (if any).

    Answer by PrydferthMenyw at 7:52 AM on Feb. 16, 2010

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