<prompt> Human: Specifically, income taxes. Im new to the workforce and paying taxes and fairly confused. I understand you can file taxes during the tax season, and Ive heard of income tax return.But my parent was telling me how you can owe income tax rather than get a return. How does that work? Since the taxes are automatically taken out of my wages, how is it that I can still owe more?Thanks, and sorry if this is the wrong place! If so, please direct me where it should be.  <response>: Welcome!Every time you get paid, your company will take out some money for taxes. This is called withholding. In January of each year, your company will send you a form called a W-2 which will list all the money they paid you in the prior year. You will then use this form to file your tax return, which is a form you file with the federal and state governments tallying up your income for the year and figuring out your actual tax owed. Usually, the withholding from throughout the year will be enough or more than enough to cover the actual tax owed, but sometimes you may have not had enough withheld and you might owe a balance.For Federal tax, you can use the W-4 calculator linked by the bot to figure out how much tax you can expect to owe and if your withholding allowances are correct. It is best to try and set up your allowances so that you owe as close to 0 as possible at tax time, instead of receiving a large refund. 