This is a question asked by practically every American. Like why do you owe federal taxes? What did I do? Who did I wrong? Well, this article might answer this serious question. Let me give it a go, shall I?
What are the reasons I’m told I owe Federal Taxes?
Whenever you finish handling the tax returns, and you don’t understand why you need to send a cheque to the IRS, one of the only explanations is that you didn’t pay them completely the amount you owed them. The amount of tax you paid during the year was more than the actual amount you paid or the amount of your income level. This is why whenever you think you’re done, it always shocks you, and you wonder, “Why do I still Owe Federal Taxes.”
Other ways you might still owe federal taxes
Starting in 2018, different exemptions occurred dependently on others, and they were not taken from your income.
If you work for a firm, company, or organization, the IRS would need your employer to hold some of your salary used to pay your taxes. The number of funds held would depend on different factors. You have a lot of control over the number of funds that are collected from your pay. The W-4 form you filled when your job started allows you to modify how much tax you have from your paychecks. The essential news is that you could always fill out a brand new form whenever you desire. You could increase the amount taken from your income. This would help get rid of that nasty tax bill that accrues at the end of the year.
If you are not familiar with what the W-4 form is all about, you need to understand the way allowances work before you go and make some adjustments. All allowance you report represents various reductions in your taxable income. Some of these include exemptions dependent on your amount of tax through periods before the year 2018. As you try to get your tax returned, more allowances reported on your form would state that a lower amount of tax has been held from your paycheck. If you report for a higher amount of allowances on your W-4, there are several dependents obtained from your tax return. You could later write a check whenever the IRS comes over in the future. This is simply an example.
Several different scenarios using the W-4 calculator could test these using calculator available at TurboTax.com.
My thoughts on the reasons you owe Federal Taxes
Where I come from, we don’t have the normal tax-paying system. All tax forms are added to every and anything we purchase. It doesn’t matter what you purchase. You could purchase food seasoning, a bucket, a broom, and it wouldn’t matter. You still end up paying tax on that product. It is not fair, but this is the world we live in. We need to pay up and let it go.