The tax system in the United States is divided into two parts: federal and state. There are many forms of taxation, including wages, revenue, capital gains, and so on. The federal and state tax systems are entirely independent, and each has its own taxing authority. The federal government has no authority to intervene in state taxes. Each state has its own tax code, which is distinct from the rest of the country. Several jurisdictions within the state can levy their own taxes. County or town governments, for example, can levy their own school taxes in addition to state taxes. The tax scheme in the United States is very complicated. And hence it may be tough for commoners to understand the same. This is why American Expat Tax Services offer their service for your benefit.
Taxes on Earnings
One of the more well-known types of taxes is income tax. You will see the deductions on your paycheck if you make money in the United States. A individual who makes money in the United States is required to pay federal and state income taxes. Social welfare and FICA are two federal fees. Each state has its own income tax, which is deducted from your paycheck by your employer. You must pay all federal and state taxes by April 15th of each year if you make more than a certain amount, $6,750. But for this you always may not have the time or knowledge required to calculate your taxes accurately. This is where US Expat Taxes comes in. Our team of dedicated professionals will do your taxes for you so that you do not have to go through the hassle.
Taxes on Sales
Sales tax is another form of tax that you can become very familiar with. This is the tax that you pay when you buy something, such as a bag of gum. Sales tax is a form of state tax that differs from one state to the next as well as within the same state. For eg, although the state sales tax in New York is 7% and in New Jersey is 3%, the sales tax in Albany is 8% and in Syracuse is only 7%. Municipalities within the state have the authority to lift the sales tax above the state cap. There are also other sales tax regulations, such as which goods are taxable and which are not. In New York, for example, gum is taxed but milk is not. Meat is taxed in New Jersey, but clothing is not. As you will see, this country’s tax scheme is very complicated.
You must file US tax returns if you are an American taxpayer living overseas or a foreign citizen living in the United States. We appreciate that filing US taxes can be intimidating, and we believe that it doesn’t have to be. USA Expat Taxes has a dedicated team of Enrolled Agents and CPAs that can provide you with tax options and amnesty schemes so you can file your returns and get in line with the IRS. We collaborate for a diverse group of customers all around the world. USA Expat Taxes seeks to make life easier for Americans living overseas by removing the stress and uncertainty associated with filing tax returns. We assist you in remaining in IRS enforcement while staying abroad. Although it can be unlikely, we have broken this down into three steps. At USA Expat Taxes, we are proud of our extensive experience delivering US expat tax services to clients all over the world, and we look forward to working with you.