Why do we pay at tax time?

What happens, is your employer takes out the percentage of tax every pay period, as determined by the government. Sometimes thats not enough, and sometimes it’s too much.

Once a year, in April, at income tax filing time, all those differences are resolved - for example, if your parents had made a big charitable donation for oh, $1000. That amount of money gets subtracted from their “taxable income” and as a result, they owe less tax. Thats one thing that might cause a refund. People celebrate when they get refunds but really, the department of revenue has been hanging onto all that money all year and making money from it.

Now lets say your parents received income from an additional source during the year – maybe they earned a lot of interest from their savings account. That’s taxable. Maybe they have a vacation home and they rented it out for part of the year. That income is taxable. All those things and more, would cause their income to be higher, and instead of getting a refund, they’re having to write a check. Not nice.

Personally I think we DO pay too much tax, ask your grandparents what percentage they paid after the war, it’s quite a difference. And the number of people employed by the government? In this country its out of control, totally. Another rant for another day.

Grand parents…yea…all dead. cept one blood grandmother and a stepgrandfather that are dumbass hillbillies. so yea… but thanks for the explination tho.