Cyber_Nietzsche OP t1_jabdhd5 wrote on February 28, 2023 at 5:07 AM

Reply to comment by croninsiglos in Why is Oklahoma State Refund so small? by Cyber_Nietzsche

I think I get it now. Thanks for the reply.

Budge9 t1_jabeb81 wrote on February 28, 2023 at 5:15 AM

When your employer pays you, they withhold a certain amount from the check to pay your taxes. You have some control over how much by submitting a certain form (w-4?). You get a refund when they withhold more money than you actually owe in taxes (including credits and deductions). The poster above is saying that your taxes are only due in April, so if you’ve paid the government too much (through your withholdings), then you’ve given them a loan until April for free, for no interest. It’s tongue-in-cheek.

Cyber_Nietzsche OP t1_jabew2a wrote on February 28, 2023 at 5:21 AM

Am I right to guess the government uses the withheld money for developments and investments?

93195 t1_jabgg8x wrote on February 28, 2023 at 5:37 AM

Withholdings are “pay as you go”. Based on how you fill out your W4 regarding dependents and other income, your employer withholds a certain amount of taxes from each paycheck and sends it to the government. Withholdings are just an estimate.

After the year is over when you go to file your taxes, you settle up. Too much withheld, you get a refund. Too little withheld, you owe more.

Yes, the government uses your tax money for infrastructure, social programs, services, schools, and anything else the government provides. They don’t invest it as much as spend it.