Quote:
Originally Posted by tompe
That means that an employer can never exactly deduct the correct amount of money.
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Which is why it is considered an
estimate, and at the end of the year you fill out forms that indicate your
actual tax liability, and either pay more or get your refund. It's really just a way for the government to get the money up front, then allow for a correction later. Yes, they could just wait and get your money later, but as many people in the U.S. have trouble saving their money reliably, the govt figures this way they are more likely to get the money they are owed on-time (instead of jailing 80% of the country for non-payment of taxes every April 16th).
Sure, it's a complicated system. But we're a complicated country.