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Originally Posted by X4biddenxLustX
I know, I hate taxes. There a necessary evil though. BUT I seriously think a lot of our money is going to waste.
I've always been super scared of owing money to the government cause what if I don't have any to pay them back with....?!
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Dont worry, if you make 20,000 or less its very likely you will owe very little to no money... most likely the government will owe you some.
Heres a very short explanation about how taxes work.. I'll try to make it simple
Every month you have a certain percentage of your paycheck taken out for taxes... The amount that gets taken out depends on how much you make, you do get slight tax breaks if your married, have kids, deductables, etc... Well the more you make the higher percent tax you have to pay, it stops after a certain point though. So every month the government is making an estimate on how much money you have, whether its in stocks, savings, investments, etc... that all gets taxed on... The government has no way in knowing how much money you have, so every year you file taxes and now the government knows how much money you have down to the PENNY -_-. From there you can determine how much you owe or.. how much they owe you! (there are CD's you buy that can do all this for you)
So when do they owe you money? Simple.. Since i stated before the government can only estimate how much you have, sometimes they over tax you... and you deserve to get ur freaking money back!!! If you get a large sum back, thats bad.. You basically loaned the government your money... and all the investments you could have made with xxxx dollars went to waste..
So when do you owe them? This one is harder to explain.. This is just one example, there are many reasons why you could owe them.
Lets say you make 10,000 a year and 20% gets removed from taxes. That leaves you with 8,000 at the end of the year. So lets say the government over taxed you 10% and they owe you $1,000.
But wait!!! You have 50,000 in your savings account and you earned 15% (ok thats insanely high interest but im making a point lol) interest over the year. You earned around 7,500 in interest that year.. The government is like zomg?? Earning that much money through interest?? That needs to be TAXED!!! The government basically said we had NO IDEA you had that much and we under taxed you... So they take out 20% tax from 7,500 which is $1,500.
So at first they owed you $1,000, but you owed them $1,500. So you need to pay them $500.
The numbers dont make sense, but just proving a point...
I had been searching endlessly for one since October before I even turned 18 with no luck. I'll be working at my local Walgreens as a Beauty Adviser there. The pay is $7.50 an hour but I get commission for ringing people up at the beauty department and selling certain items. I'm expected to be working part-time 18-24 hours a week, 3 days a week most likely. But I've been wondering about how much they'll take out of my paycheck for taxes? I've been asking people and haven't gotten an answer or anything close that I'd like to hear. I understand there are a lot of variables when it comes to taxes. I'm only 18 and still live with my parents, and I put down all 0's on my W2's. At my last job which I worked 10 hours a week and made $7.15 an hour, they took about 11-12% out for taxes which left me at $6.28 an hour. But I was also under 18 at that time. I was wondering if anyone knew of some way of maybe not figuring it all out but estimating. I like control and knowing things ahead of time, absolutely HATE surprises. I just want to have an idea so I can start planning my budget.
