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How to pay taxes in America

 

How to pay taxes in America

Taxes are sums of money by which people contribute to the costs of running a country or society. For example, you pay taxes to schools, hospitals, and roads. When citizens and green card holders pay taxes, they pay to participate in programs that benefit them.

 

How to pay taxes in America

Taxes are money that we pay to governments. Governments include the federal government, state governments, and the smaller local governments that administer counties and cities. If you earn money, spend money, or own property in America, you will pay taxes in one way or another. It is important to understand how to pay taxes the right way.

 

What is income tax?

Income tax is a tax on your income (what you earn or receive each year). People pay income tax to the federal government and to most state governments. Some states, such as Washington and Florida, do not impose an income tax.

 

Federal income tax is collected by the Internal Revenue Service and goes to the US government treasury. State income tax goes to the state revenue departments.

 

The tax rate or value you pay depends on what you earn and what you spend. People who earn or get more pay more tax than those who earn less.

 

Other things affect how much you pay. If you have children, you can get a large tax credit to help you with the costs of raising a family. A tax credit means that you pay tax less than your income.

 

Marriage can affect how much tax you pay, too. Unmarried people get less tax deductions than married people, so they may pay more taxes. But spouses who work may pay more taxes together than if they are not married.

 

How do I file a tax return?

Each year, workers and businesses have to calculate their income for the previous year. Then they find out how much tax they owe the government and submit it to the government. This process is called “filing a tax return.”

 

There are many people who pay their taxes while filing their return. This is because a tax amount is taken from their salaries before they receive it. Sometimes your tax return may show that you have paid a lot of taxes, and the government owes you a refund!

 

Important note: You must tell the truth when submitting your tax return. If you are not a citizen of the United States of America, this is especially important, because errors in your tax return could result in your deportation.

 

If you are a legal and permanent resident (green card holder), be sure to declare all your income. Read this information from USCIS about taxing resident aliens.

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