The amount of money you get back from your federal taxes depends on how much you have paid, as well as how much you ultimately owe. The amount you pay is based on the estimated number of exemptions that you claim on your W-4 form, or the estimated tax payments you make yourself if you are self-employed. Your actual tax liability depends on your filing status, annual income, and allowable deductions.
Your employer will ask you to fill out a W-4 form when you start a job, and you should complete an updated W-4 form if you tax filing status changes, such as if you marry or have a child. This form asks for information about your filing status, such as whether you are married or single, as well as the number of withholding allowances that correspond with your filing situation. The higher the number of deductions you claim, the less income tax your employer will withhold from your paychecks. If your employer withholds too much income tax based on the information on your W-4 form, then you are entitled to a refund of the overpayment when you file your federal tax return.
Estimated Tax Payments
If you are self-employed, you must make estimated tax payments throughout the year to cover the federal income tax you owe. These payments are due on April 15, June 15, September 15 and January 15 of the following year. Estimated tax payments should be based on your income and tax liability during the previous year, altgough you may adjust your payments based on whether you are earning more or less than you were a year earlier. If your estimated tax payments exceed your tax liability when you file your annual tax return, you will receive a refund for the the difference.
When you file yuor federal tax return, your total tax liability will be based on your earnings during the previous calendar year, or the amount you earned from all of your jobs. The lower your gross income, the smaller the percentage of your earnings you will owe as income tax. If you only worked during part of the year but your employer withheld income tax based on the information on your W-4 form, you will probably overpay because he will have based your tax liability on the tax rate for a higher income bracket. You will receive a tax refund equalling the amount of your overpayment.
The Internal Revenue Service allows you to offset your taxable earnings by crediting or deducting certain expenses. Deductible expenses include mortgage interest, contributions to charity and some medical and education expenses. In addition, if you have children, you are entitled to tax credits due to the expense of raising them, provided you are the only parent claiming a tax credit for a particular child. If your deductible expenses are minimal, you may claim a standard deduction, which is $5,800 for a single person and $11,600 for a married couple as of the time of publication.
- How to Obtain a Business License in Texas
How to Estimate How Much I Will Get Back in Taxes
Making an estimate of the size of your tax refund is helpful for planning the household budget. Plus, it’s a good idea...
If I Make Less in a Year, Will I Get More Back on My Taxes?
Many taxpayers dread filing tax returns, but some workers are eligible for significant tax refunds each year. Tax refunds result from an...
When Will I Get My State Taxes Back?
When you have money coming back from the government, you want to get your hands on that money as soon as possible....
What Percentage Do You Get Back on Taxes for Charity?
Charitable donations are an essential income stream for many non-profit organizations that do good works like caring for animals, the homeless and...