I'm new to this country and I'd like to know the process of how a citizen pays taxes... how and why and how does it work..
gracias :)
How - when you work, your employer will take money out of your paycheck and send it to the government (state and federal). you will get a statement (pay stub) that tells you how much was taken out for state tax, federal tax, and medicare/social security. At the end of teh year, everyone files a tax return that will figure out if they have had enough money with held or not. If not enough has been taken out, they have to pay the government, if too much has been taken out, the government returns it to them.
Why - to provide the services that government is tasked with providing. Defense (army,navy air force, etc.) is all funded by taxes. Highways, roads etc. are funded by a comwhy do americans pay taxesbination of state and federal taxes. Fire departments, police departments are funded by local and state taxes, and the CIA, FBI, etc, are funded by federal taxes. Obviously there are many more services provided by the various levels of government (some that people will argue about).
Why we pay taxes: we have to pay for the operation of government, pay huge government debt, invest in roads and bridges (very little now).
How: typically, your employer withholds a portion of your paycheck which they are suppose to forward to the tax collector - Internal Revenue Service. The withholding is determined by a formula. Then prior to April 15, a person files a tax return for the previous year. A calcuation is made in the filing that compares the amount of money withheld during the previous year by your employer to why do americans pay taxesthe amount of tax you would owe best on applicable tax rate. If the employer withheld too much compared to taxes owed then you should get a tax refund. If the employer didn't withhold enough then you would have to pay taxes - the difference between what is owed to withholdings.
. . . .it's an obligation of a citizen or resident. . . .to pay taxes to government upon their earnings. . . .your employer withholds taxes from each paycheck. . . .you file a tax return between January 1 and April 15 for prior year.. . . .you get a refund or you pay more taxes. . . . .you MUST have a social security number SSN or ITIN for your filing. . . .you file a return with the IRS for the federal government and also with your state, unless, like FLA and TX there is no state income tax. . . .
No comments:
Post a Comment