Not exactly. Each person is entitled to either a standard deduction or to itemize deduction, and many people receive tax credits.
Tax due = ( income - deductions) - credits For example, a single mother with four children filing as head of household. Income: 20000 Approximate tax withheld @ 15% = 3000 Standard deduction = 7850 Exemptions for children = 17000 So any tax paid would refunded in full, with the possible addition of an earned income credit. In fact, this mother's income would need to be near 60K before she owned any tax. 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. > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;203748912;27390454;j Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:270047 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
