Achieving the American dream is the goal of all the own and strangers who live in the land of opportunities, but the progress and economic advancement of the country depends largely on the contribution that is retained from all those who make life in this North American country.
Undoubtedly, taxes are something that anyone who wishes to live well should not ignore; being up to date with the payment and being informed of how much, how and when to pay is an imperious necessity, taking into account that the more you earn, the more you will have to pay.
What are Taxes?
Taxes are taxes levied by the U.S. government on work performed by individuals, regardless of their legal status. These taxes are progressive, meaning that higher rates are levied on those with higher incomes and lower rates are levied on those with lower incomes.
Federal income taxes apply not only to individuals, but also to corporations, small businesses, trusts and other forms of income, including self-employed persons or independent contractors.
Capital gains, hourly wages, expenses and all of a taxpayer’s miscellaneous income are added together for federal income tax reporting purposes.
How do U.S. Taxes work?
Income tax is collected directly from each paycheck. The amount deducted depends on the employee’s instructions when preparing the W4 form for his or her employer.
At the end of each tax year, taxpayers receive a W2 form. Income is calculated there and taxes are reported to the IRS based on that information. If you are a self-employed taxpayer, you must also file an income tax return.
Who must pay U.S. Taxes?
Any individual, corporation, business or self-employed person who earns income or profits during the tax year must file federal income taxes with the IRS. Taxes on trusts, estates, estates, property, interest, investments, lottery winnings, unemployment benefits and other types of income are also reported.
To file your taxes, you need a taxpayer identification number, a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). U.S. citizens (by birth or naturalization), as well as residents and nonresidents, are taxpayers.
What is the difference between a state tax and a federal tax?
Federal income tax applies to everyone who earns a minimum amount to meet this tax liability. State income tax can be calculated at the same time as federal income tax, but must be paid separately and the rules vary from state to state.
* Report federal taxes to the IRS and file state taxes with your state tax office. The following states do not pay income taxes: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. But their residents must file federal income taxes.
* Federal income tax is calculated at different rates depending on how much money you earn in a year. Countries have variable rates and others have flat fixed rates. States with a flat tax include: Colorado, Illinois, Indiana, Massachusetts, Massachusetts, Michigan, North Carolina, Pennsylvania, and Utah.
When do you file your taxes?
The Internal Revenue Service (IRS) is responsible for receiving tax returns from taxpayers who have U.S. tax obligations. The deadline for filing tax returns for most individual taxpayers is April 18.
The dates for these units are March through April, which means they have limited viewing hours.
* March 15: Partnership (Form 1065) and S Corporation (Form 1120-S) returns.
* April 18: C Corporation (Form 1120) and Asset and Trust (Form 1041) filing. If you need more time to prepare and file your return, you may request a 6-month extension, but you have until April 18 to file your application.
Any application submitted after this date will not be valid. If an extension is requested, it is preferable to pay estimated income tax to avoid penalties and interest.
How are taxes paid in the United States?
After you file your taxes, you will know if you will get a refund or if you will have to pay the difference to the IRS or your state. When you file your tax return, you can pay online with a debit or credit card. You can also send checks by regular mail and pay by phone and mobile. It is important to use official IRS funds.
By being solvent with your taxes, you not only collaborate with the progress of the country, but you will also have the peace of mind of not acquiring debts that in the long run could turn into serious problems.
