Quote:
Originally Posted by HarryT
Could someone satisfy my curiosity, please?
Fictionwise say "Since many of our US customers will be receiving tax refunds this week...."
Why does one receive a "tax refund"? The way that the British tax system works is that, unless you run your own business, or something like that, income tax is simply deducated automatically from your salary by your employer, so you automatically pay the right amount of tax.
How does it work in the US to result in so many "refunds" being given?
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Ah, but if it was that easy we couldn't sell tax preparation software, it would put tax consultants, tax lawyers, lots of other people out of work. We need complication. Even the IRS often doesn't know their own rules.