Why do we need to file taxes each year?

Question

When our taxes are automatically withheld per paycheck anyway?

I recently got a job and i noticed all the ss, federal and local taxes are deducted immediately.

Or is the filing of taxes just a counter check of the govt i.e "aha! you misreported your income!", in which case it doesnt make sense as well because the govt should have updated records of our income and its taxes. If this is indeed the case then it just is really "filing" and not really re-paying taxes again right?

If anything, we should be able to ask mr. govt and say "can you tell me how much i've been earning so far, and how much tax ive been paying?", not the other way around.

Answer 1

The amount withheld is just an estimate of what you'll owe, based on that particular paycheck.  You fill out a tax return to calculate the exact tax, and compare it to what was withheld.  If too much was withheld you get the extra refunded to you.  If not enough was withheld you have to pay the extra.

Depending on your circumstances, the amount withheld might be very close to what you actually owe, or very different.

Answer 2

You really don't think your getting a free ride here?  Come on we have to pay for all the people on welfare, rich CEO's pensions, etc.

In addition, it is required by law.

Answer 3

When you file each year, you report many thigns taht the government does not know, such as how many children live with you, what your medical expenses were, etc.  Usually, some money changes hands in one direction or the other based on that information.

Answer 4

You file taxes each year in order to insure that the amount of taxes taken from your paycheck is the correct amount.  If too much was deducted I'm sure you'd like to have the overpayment returned to you.  On the other hand, the government would like to have any money you may still owe them if too little was deducted.  

As for the amount you've earned and the taxes you've paid so far, your pay stub from your employer should have all that information on it each time you are paid.

Answer 5

We want have to if the American tax payers

will wake up and vote in the Fair Tax Act.