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I'm Curious About What Makes This Happen

I recently saw a tv commercial about owing the IRS. What exactly makes a family/person owe money rather than receive it other than not doing their taxes each year like they're suppose to?

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sweetpea1217

Asked by sweetpea1217 at 1:06 AM on Mar. 14, 2011 in Money & Work

Level 22 (14,906 Credits)
Answers (6)
  • Not having enough taxes taken out of checks throughout the year - alot of self employed end up owing in as they don't send in taxes throughout the year.
    bethany49

    Answer by bethany49 at 1:09 AM on Mar. 14, 2011

  • I think the commercials you're seeing are mainly for those who own/owned businesses and did not pay their business taxes. My FIL owned a business for 20+ years and didn't pay his taxes right. He got in a lot of trouble and one of those kinds of businesses helped him and he only had to pay back a small fraction of what he owed.
    BrendaMomOf3

    Answer by BrendaMomOf3 at 1:14 AM on Mar. 14, 2011

  • or they could be like my dad who would do whatever he could to get out of paying taxes and then he got audited and whatever wasn't exactly legal.
    Liansmommie

    Answer by Liansmommie at 1:17 AM on Mar. 14, 2011

  • You do know that receiving it just means you paid too much to start with and you gave the government an interest free loan, right?
    Kelly913

    Answer by Kelly913 at 1:26 AM on Mar. 14, 2011

  • Most people owe taxes; like me, they don't like the idea of the government using their money and not paying them interest..

    rkoloms

    Answer by rkoloms at 2:46 AM on Mar. 14, 2011

  • This year is the first time we actually owe; last time that happened was 1989. Essentially, for us this year it was a combination of things ... we have a personal business as well and those numbers flow into our personal tax return numbers; just so happens that the way the math worked this year meant we had to pay. Also, hubby took on an additional teaching job and no fed taxes were taken out so that impacted us somewhat. We also lost a $1,000 credit for one of our kids because he turned 17 last year; next year we'll be able to claim $2,500 on him because he'll be in college. Few more (little) things but you get the idea. Still, I'd rather pay (actually would prefer to zero out) than receive a refund; at least the money I owe has been sitting in MY account earning interest for ME this whole time. We've never looked at any refund as a "bonus" as so many people do - it's OUR money that was owed us that the govt used.
    Anonymous

    Answer by Anonymous at 6:57 AM on Mar. 14, 2011

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