Summary:
This article is about Income tax. Is getting a big income tax refund a good idea? U.S and Canada income taxes that are withheld in excess of the tax liability are refunded each year, some taxpayers intentionally overpay their taxes to get a large refund. In the United States, the person who are employed are required to file a W-4 form(which is like T-4 form in Canada) with their employee. including social security number,name and address, as well as tax information. It includes withholding allowances the employee is claiming and martial status, along their wages earned, certain amount of tax will be deducted from the paycheck.
Connection:
Income tax is a big deduction from every employee's wages. The more money you earned, the more taxes are deducted. Ch 16 had mentioned the taxes, but it doesn't present much information about it. So i think this article will help me understand more. Claiming too many allowances will result in underpayment of tax. Significant underpayments are subject to penalties and interest. It is therefore important to claim enough allowances, or to make estimated payments.
Reflection:
Every legal employees have to pay for the taxes, therefore, sometimes, The revenue agency is not able to make sure everybody get the exact or correct amount of tax refund. We have to be more aware of our own refund. Or maybe we overpaying the income tax.
1 comment:
Ting,
Yes, I think that is a good idea of getting a big income tax refund. For each year, the taxpayers pay lots taxes. That becomes necessary to pay more taxes if you work harder and earn more money. But sometime that is not fair for the ones who have overpay their taxes. So that is reasonable for them to get the refund from the governement. But sometimes what if the revenue agency unable to make sure everyone get the right amount of refund? What should we do after that?
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