QUESTION
Why do I have to file my taxes if my paycheck takes out money for tax?
Asked on Jun 29th, 2016 on Taxation - Ohio
More details to this question:
I am not even 100% sure what filing taxes means. I've heard that you can go to prison if you don't do it. I don't understand why. Didn't I already pay my taxes? Why do I have to file them? I've never done that. I don't even know how to do that. I've just worked and thought the taxes were being taken out of my paycheck and that's how taxes work. So I am worried. Am I going to go to prison? I am assuming you need some kind of papers. Where do I get them? Are they hard to fill out? What if I make a mistake? Would I go to prison then? I've heard about Turbo Tax. Should I use that?
1 ANSWER
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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First, you can't go to prison for not filing your taxes. You CAN go to prison for LYING on your tax forms (unless you're Hillary, then an apology makes everything all better). The taxes taken out of your paychecks are an estimate of your tax liability based on your wages. Say two people have the same job, making the same pay. Bob has no other income while Ashley gets $50,000 a year in dividends from stock she owns. Bob's income tax will be much less than Ashley's both have to file income tax returns to calculate the exact amount of their taxes; Bob will probably get a refund while Ashley will probably have to pay several thousand dollars more. If you haven't filed your taxes for several years, you need to consult a tax attorney.
Answered on Jul 29th, 2016 at 5:36 PM