As a salary earner who pays PAYE. It deducted from my payment every month. Do I need to fill my tax. I want to know because we already pay tax every month
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As a salary earner who pays PAYE. It deducted from my payment every month. Do I need to fill my tax. I want to know because we already pay tax every month
Ah, tax can be a tricky topic, but don't worry, I'm here to help you understand it easily. As a salary earner who pays PAYE (Pay As You Earn), the tax is deducted from your payment every month. Now, the question is, do you still need to file your tax returns even though the tax is already being deduRead more
Ah, tax can be a tricky topic, but don’t worry, I’m here to help you understand it easily. As a salary earner who pays PAYE (Pay As You Earn), the tax is deducted from your payment every month. Now, the question is, do you still need to file your tax returns even though the tax is already being deducted monthly? Let’s break it down for you:
Simple Explanation:
Filing your tax returns means submitting a document to the government that shows how much money you earned and how much tax you’ve already paid.
How it Works:
Even though tax is being deducted from your salary monthly through PAYE, it’s still important to file your tax returns. This is because the government uses the information in your tax returns to calculate if you paid the correct amount of tax based on your total income and expenses for the year.
Benefits:
1. Claiming refunds: If you’ve overpaid your tax, you can get a refund by filing your tax returns.
2. Avoiding penalties: Filing your tax returns on time helps you avoid penalties and legal issues.
3. Updating information: You can update your personal details or claim deductions by filing your tax returns.
Risks:
1. Penalties: Failing to file your tax returns can lead to penalties and legal consequences.
2. Missed refunds: If you’re eligible for a tax refund but don’t file your returns, you might miss out on getting your money back.
Real-life Nigerian Example:
Imagine you’re a teacher who pays tax every month through PAYE. By filing your tax returns, you can claim deductions for expenses related to your profession, leading to a lower tax bill.
Common Mistakes:
1. Ignoring filing: Some people think they don’t need to file if tax is already deducted, but that’s not the case.
2. Incorrect information: Providing inaccurate details in your tax returns can lead to issues.
Practical Steps to Get Started:
1. Gather your income and expense documents.
2. Fill out the tax return form accurately.
3. Submit the form to the appropriate tax authority before the deadline.
Short Summary:
Even though tax is deducted from your salary monthly through PAYE, it’s essential to file your tax returns to ensure you’ve paid the correct amount of tax and potentially claim refunds or deductions. Don’t forget to file on time to avoid penalties and legal troubles.
Now, do you know where you can get the tax return forms to file your taxes?
See lessThis is a very common question, and the answer depends on your employment situation and your state's tax rules. If you are a salary earner in Nigeria and your employer deducts PAYE (Pay As You Earn) from your salary every month and remits it to the relevant State Internal Revenue Service, then: YouRead more
This is a very common question, and the answer depends on your employment situation and your state’s tax rules.
See lessIf you are a salary earner in Nigeria and your employer deducts PAYE (Pay As You Earn) from your salary every month and remits it to the relevant State Internal Revenue Service, then:
You are already paying your income tax.
In many cases, you do not need to personally calculate and pay income tax again, because your employer does that on your behalf.
However, filing a tax return is a different matter from paying tax.
You may still be required to file an annual tax return, even if your PAYE has been fully deducted. In practice:
Many employers handle the filing requirements for their employees.
Some states require employees to submit an annual return or have their employer submit it on their behalf.
If you have other sources of income (such as a business, rental income, consulting, or freelance work), you are generally expected to declare those as well, and you may owe additional tax if applicable.
So, if you earn only salary and PAYE is correctly deducted every month:
✅ You are not paying tax twice.
✅ You may have little or no additional tax to pay.
⚠️ You should still confirm whether your employer files annual returns for employees or whether your state expects you to file personally.
If you tell me:
Which state you work in (for example, Rivers, Lagos, Abuja/FCT, etc.), and
Whether you work for a private company or a government organisation,
I can explain exactly what applies to your situation.