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Originally Posted by stevie667
I don't get american taxation. It just comes straight out our pay here (unless your being naughty and not telling them about it)
Do you just get paid everything, then have to pay some to the government at the end of the year? Does that mean you have to put money into your account to keep tucked away (does the government charge tax on the interest you make too)? What happens if you just spend it all?
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You either have to have it taken out weekly, monthly, "as you go", or you can make quarterly estimated tax payments. Otherwise, if at time of filing you owe more than a certain rather small percentage of your total tax due, you have to pay a penalty. If you spend it all and can't pay, you go to jail unless you negotiate a payment schedule.