Types of Taxes We Pay in the US

Types of Taxes We Pay in the USIn the life of Americans taxes are not the last place. Evasion of their payment is punishable by law. Taxes are of several degrees: federal (paid by all residents of the United States), state taxes (paid by residents of certain states), local (additional) taxes are set by regional authorities.

Income tax
Paid from all types of earnings – salaries, fees, winnings, tips. Each year, taxpayers submit 1040 tax service. It can be used to determine how much you earned per year and how much tax is withheld from the salary.

If the withheld amount was greater than the stipulated amount, you will receive an overpayment back. Accordingly, if deducted is not enough, you will have to pay extra

Income tax is taken from wages or private labor. It is calculated on a special scale and the amount of tax depends on your earnings. If you work for an employer, he pays it with your salary for you. If you work for yourself, then you must pay the deductions yourself at the end of the year.

Taxes on Social Securiti tax and Medicare
Withheld from all types of income and go to social state programs to help retirees, the poor, the disabled and the unemployed. The fund pays pensions, benefits to employees who have lost their ability to work and to families who have lost their breadwinner.

People who have ten years of general work experience can receive payments under programs. Affordable medicine for “Medicare” is provided to people over 65 years of age.

Property taxes
Property fees are paid by homeowners for the house and land. Charged by state and local governments. Spent on the maintenance of the livelihood of the village. Holds go to public schools and other important infrastructure.

Sales taxes
Charged to local budgets from each product sold in its territory. Sales fees are based on price and are included in the cost of goods and services when they are purchased. The collected funds are used by local authorities to repair roads, to maintain fire and police protection.

Tax affairs are maintained by the IRS. Each resident annually sends a declaration of income to the federal service. The filing time is from the beginning of the current year to April 15th. You can fill out the tax form yourself, by hand and send it by mail or submit it electronically on the IRS website.

Those who have difficulty filling will be assisted by numerous services for a small fee or free help centers. They are located in all cities of America.

You can find a taxpayer assistance center at 1-800-829-1040 or on the website. Pre-registration is not required.

Income statement – Form W-2
This is a document that displays your earnings and calculated amounts for the past year. Taxation period is from 1.01 to 31.12 of each calendar year. By law, your employer is obliged to issue f.W-2 with your data. One copy of such a certificate, together with the declaration, is sent to the tax authority.

Federal government agencies use American taxes for:

  • Ensuring the state security of American citizens
  • Providing free education to students
  • Reconstruction, operation and construction of roads and highways
  • Providing medical care to low-income and elderly people
  • Preventing emergency situations during natural disasters
  • Scientific research conducted for the prevention and treatment of diseases.

Picture Credit: geralt

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