Ok I need to know what I am missing here :
When we work and get paid, the government deducts taxes, based on our income bracket .
If that is the case, why is it tat when we file our income taxes (for the sake of simplicity, let us assume there was no donations or RRSP) we sometimes have to pay the government back? Didn't payroll get it right and deduct less taxes? Vise versa, if payroll was done right and we paid the right amount of taxes (based on our tax bracket) we shouldnt be getting any refund.
Why does this happen? Is it because things change throughout the year (getting a raise, changing tax brackets etc) so income tax season is the time to iron these issues out?
When we work and get paid, the government deducts taxes, based on our income bracket .
If that is the case, why is it tat when we file our income taxes (for the sake of simplicity, let us assume there was no donations or RRSP) we sometimes have to pay the government back? Didn't payroll get it right and deduct less taxes? Vise versa, if payroll was done right and we paid the right amount of taxes (based on our tax bracket) we shouldnt be getting any refund.
Why does this happen? Is it because things change throughout the year (getting a raise, changing tax brackets etc) so income tax season is the time to iron these issues out?