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In the past couple lessons you learned how to calculate how much money you owe from income taxes each year. Dont tell your friends you know how to do this or else they will want you to do their taxes too. But when you actually do these calculations you might be a little caught off guard as to how high the amounts seem to be. Well one thing that a lot of people forget about tax brackets is that they only show you how much total tax liability you have, but the actual amount that youre on the hook for is usually a lot lower. In fact, its pretty common to not owe anything for your taxes or better yet, actually get money back from them instead of having to pay. In this lesson, were going to learn about two types of payroll deductions; pre-tax deductions and payroll taxes, and well take a look at how they work and how they can affect your tax bill at the end of the year. Lets get into it! We are so close to being done with learning how to file your own taxe