Here I can break it down for you, not using Tax vocabulary so your still confused after you have read the whole post and still don’t get it, or feel I wasted 5 minutes of your life. I know a lot of people don’t get why they have to work so hard and have so much taken out , I hear it a lot. I also hear all the reason why we shouldn’t have to pay taxes such as THE GOVERNMENT CAN’T BE TRUSTED WITH OUR MONEY. I can only say in my opinion that’s fair to say. I yes I, have been driving this highway 12 every weekend to go pick up my kids, and ill say two years later am I seeing THE ROAD (because that is what the money is spent on ) having a slight change to it not fixed, just a slight change to it. People don’t see where the money has went or is going therefore we are confused. Well back to why you have to pay before I get off topic.
The United States have a job to do and that’s to pay for School, Roads, Military, Hospitals those National parks that are
almost non-existent BEAUTIFUL as ever. In order for the United States to pay for those things the government has to have us the people, as well as companies give them a percentage of the income that they receive. Its like the invisible agreement you made with someone when you turned of age and started working.
Due to it being a percentage of your income that is taken out, that’s why people with a higher income has more taken out and probably complain a little more then the people with less income. THE PERCENTAGE OF YOUR INCOME YOU GIVE TO THE GOVERNMENT IS CALLED INCOME TAX. Which is used to buy the things we need.
When we don’t need a lot or a lot of that money wasn’t spent we get more tax breaks or cuts. Vice versa when they go over budget we get higher taxes to pay.
Now your probably wondering who is responsible for all this? In case you slept in History class the Congress and President are responsible for making, writing, and approving these tax laws. Sounds like a piece of cake when you write it and approve almost like making your own test and grading it.Internal Revenue Service (irs) has the job of enforcing the law and make sure people are complying with these laws. Issuing your tax refund, processing your tax refund and looking over them which I believe then they hand it over to the Treasury. The Treasury has the fun of paying government expenses. When you owe government things such as student loans, parking tickets , and you don’t receive all or a portion of your state refund that’s probably where it went and who grabbed it from you.
Hopefully you all have a better understanding of the whole income tax and why its taken out, specially the people who are going to be or who has just filed taxes for the first time.Congrats!
I know we all hate being on hold for forever, at least i do. I hate waiting forever and then some way some how i get disconnected. I seriously hate it when im talking to a representative and then i get disconnects. Not just with the IRS in general. I hate when they don’t call back yet you had to do all of that verifying identity before you could tell them why u were calling. Moving along i hope these numbers get you to a live person sooner then later or in my world before my phone dies .
If you are a paid blogger, and made over 400 dollars of income you have to report it on your taxes? Yes that is correct. That’s not just a blogger, a babysitter, hairdresser, self contractor. A self contractor or freelance your basically self employed you are given a 1099 MISC at the end of the year. When given a 1099 MISC (miscellaneous) you have no taxes taken out.