How to calculate income tax in the USA


How to calculate income tax in the USA

Taxes are defined as a sum of money paid to the government, it is a contribution from the people to manage the costs of the state, and taxes are considered one of the most important pillars in the economy of the United States of America, as they represent 90% of the total revenues in the budget. The tax is divided into three levels according to the federal system, which is the income tax And corporate and inheritance taxes, customs and social security fees taxes.


Tax system in America

If you earn money, spend money, or have any property in America, you are obligated to pay taxes to the government.


Income tax

It is a tax imposed on your income and the value of the tax depends on what you earn and what you spend. Individuals who get more money pay more taxes, and there are some states that do not impose an income tax, such as New Hampshire and Florida.


How to calculate income tax in the USA

The percentage of income tax varies from one individual to another, according to the amount of income that the individual receives and his obligations, in addition to the fact that citizens are divided into married or single segments and other divisions.


Marriage can affect how much tax you pay, so unmarried people get less tax deductions than married people, so they may pay more tax.


But spouses who work may pay more taxes together than if they are not married.


Income tax ranges from 10% to 37% and varies from state to state.


It is worth noting that the United States of America is subject to federal law, meaning that there is no so-called tax law for a particular state without the other, and tax accounting varies from state to state, depending on the amount of public burdens.


The imposed tax rate ranges from 6% to 10%, and this is due to the type of trade you carry out.


How to submit a tax return

Business and employed citizens have to calculate their income for the previous year, then find out how much tax they owe the government and submit it to the government.


A lot of people pay their taxes at the time they file the return tax because an amount of taxes is taken from their salaries before they get it.


Sometimes your tax return may show that you have paid a lot of taxes, and the government owes you a refund!


The United States of America withholds 24.6% of income, 10.7 as income tax and 6.3 as state tax, in addition to 7.7 percent for Social Security.

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