Getting Taxed Three Times For Our Earnings

[lindatucker]

  Before we receive our pay check the taxes are taken out already. Taxes are also taken out of our retirement pay. Then when we file for our income taxes we end up oweing more taxes. Why?

[champak97]

It seems like an injustice, whipping the common man out of his money.

[monnee]

That's how the government gets so much of taxpayers $$$$$ to spend.

[marz32]

You really need to understand how taxes work, for of all you fall into a certain tax bracket depending on how much you make, 20%, 25%, 30% as an example. But there are deductions such as having children, paying interest on your mortgage, charitable donations, etc. When you do your W4 at work you claim so many exemptions based on your anticipated deductions, then taxes are taken out of your paycheck based on that. For retirement accounts, you can either put in tax free money now and pay taxes later, or put in taxed money now and not pay taxes later. At the end of the year if you overpaid on your taxes you get a refund, if you under paid you have to pay taxes (if you underpay to much and too many times you might get a penalty).