WOW, obviously you never lived on the poverty line.

Read this one more time:
32.58% of those Americans who _filed_ income tax returns did not _owe_
any federal income
tax at all for 2005.

You get a refund if you paid more than you owed.
paid    owed
$260 > 0
refund = $260

On Thu, Sep 18, 2008 at 1:08 PM, Gruss Gott <[EMAIL PROTECTED]> wrote:
>> Sam wrote:
>> It is not. If you don't owe you get a refund.
>>
>
> Here's how it works:
>
> Let's say you make an income of $100/wk ad the gov't says it needs 15%
> of your money.
>
> That means each week you get $85 cash money and the gov't gets $15.
>
> At the end of the year the government's taken 52x$15 = $780.
>
> But let's say as year's end you tell them that because you had a child
> you get the child-tax-credit of $80.
>
> So now the gov't owes you $80 and you get a refund.
>
> Or, let's say that the gov't says that since you got a raise during
> the year you jumped tax brackets and should've been in the 20%
> bracket.  Well, 52 x $20 = $1040.
>
> Now you owe $260 on your taxes.
>
> And this is why even people who don't file pay taxes.  Their employer
> may have already withheld the required amount from their income and
> paid the gov't. Thus they've already paid taxes; they just haven't
> filed for the record or for any adjustment.
>

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