Knowing how the #IRS calculates your taxes at the end of the year can be confusing. Some people get a BIG refund during #tax time and others may end up owing a lot. You may have wondered yourself why your friend received more money than you but your circumstances seem similar. So to help clear up some confusion, Here is a quick explanation of how taxes work in one minute. Income taxes are paid to the government out of your paycheck throughout the year. These funds are distributed towards our country’s needs. To keep our country safe and free, for social programs that help families in need of food & housing, to give small businesses grow and much more paying your fair share of taxes is good It helps our country thrive and stay strong. Everyone should pay their fair share of taxes and not A penny more. It would not fair for the government to be in charge of your wealth. You can see how much was paid into federal income tax on your w2 in box 2. A tax refund is a refund on the taxes you overpaid throughout the year. Your tax file is calculated based taxable income minus credits, plus other taxes, minus payments/ federal income tax withheld equals tax refund/ taxes due. Getting a tax refund can be exciting but it’s a big indicator that you are paying too much throughout the year. This is like giving the government an interest-free loan and begging for it back at later. Like and Subscribe for more tips, strategies and financial life hacks. There are many strategies to reduce liabilities. Karme has expert tax pros, wealth coaches, and business advisers to help you keep more money in your pocket to build wealth for the future. Get with your Karme advisor today. www.mykarme.com Twitter: @mykarme Instagram: @mykarme Tumblr: @mymoneykarme Facebook.com/mykarme 9725190041