What is income tax and what are the rules for paying it?

Question

I was just Googling teen taxes. And I need an answer to a simple question that nobody says anything about. In one paragraph the author of the article says that on the first day of the job, when you show up you have to fill out a W-4 form. Then the employer knows how much to deduct for taxes and deducts it from the income. Then she talks about the person filing their income tax

Now for my question: what does that mean? If the employer withholds the taxes, then does the employer pay them? And if so then why does she say to file for income tax? Do I have to pay it TWICE: once when my employer does it and once when I file on my own? And what does it mean to file for income tax? I'm just kind of confused. If someone would answer my questions and tell me anything else that I might need to know, I'd be very appreciative.

Answer 1

.  Through the year you might have money withheld from your paycheck for federal income tax.  At the end of the year, you prepare a form called a tax return to calculate how much tax you owe total for the year, and compare that to what was withheld.  If you had more withheld than your total tax, you get the extra back as a refund.  If you didn't have enough withheld, you have to pay the rest rather than getting a refund.

Answer 2

U have them taken out of your salary from the employer they send them to I.R.S Internal revenue Service. U will also have social security taken out U will pay half of that and the employer will pay the other half. At the end of the year u will get w-2 from employer U have to have this to file taxes at end of year. U get this from them in January they have to have it to you by The 30th. Please take it to someone  Jackson Hewett or H&R Block they can help. Hope this helps u

Answer 3

The employer withholds taxes based on information you provided on your W4. If you increase your allowances on your W4, the employer will deduct less federal and state income taxes while FICA taxes and other taxes remain unchanged.

Based on your total income for the year, you must file your tax return. The total income includes your wages, capital gains, interest income, dividend income... Then you have deductions. So you figure out your taxable income. Then on the taxable income, you will figure out your tax.

Now if you have already paid more federal taxes than your federal tax liability as per your return, then you will get a refund. If you paid less federal taxes than your federal tax liability as per your return, then you must pay it.

So if you put 0 allowance on W4, you should expect a fat refund check after you file your return. If someone puts 10 allowances, he/she may be required to pay additional taxes plus interest and penalty.

For articles on your U.S. tax return, http://taxipay.blogspot.com/2008/04/list...

Answer 4

Whenever you work for an employer, the employer is responsible to withhold Federal Income Tax, State Income Tax, and Social Security Taxes from your paycheck.  Then, the employer will send these tax withholdings to the appropriate agencies on your behalf.  

The amount of Federal Income Tax and State Income Tax is based upon your W-4 filing.  Social Security Taxes are withheld at 7.65% of your gross income.

Every January, your employer will send you a W-2 form.  The W-2 shows a summary of all you wages and tax withholdings for the previous calendar year.  You will use this form as the basis to file your tax returns that are due April 15 of the following year.  For example, 2008 tax returns are due to be filed on April 15, 2009.  The tax return is where it is determined if you are due a tax refund or if you owe any additional tax.  If you owe, the payment is due by April 15.