Migrated To The USA? Know Your Share Of Taxes
If you have migrated to the USA recently and have been able to acquire a Green Card, it would be in your interest to know about the kind of taxes and the way you can pay them. This will enable you to become a responsible citizen and also contribute to the well being of the country.
Overview of the US Income Tax System
If you are in or around New Orleans, knowing about prevalent taxes and their applicability in your case is a fairly easy process. You can get in touch with tax consultants in New Orleans who are likely to help you understand the system and also file relevant taxes.
The tax system in the US is monitored and managed by Internal Revenue Services. This is a branch of the U.S Treasury department. The federal income tax you are entitled to pay is calculated based on the income you earn in any financial year.
Tax Deductions and other Credits Applicable
The total income after working out the deductions will be the taxable income. This taxable income, when multiplied by relevant tax rates, would be the federal income tax. Further, the federal income tax minus your tax credits would be the net federal income tax that you need to pay. Tax consultants in Palm Springs can help in calculating the exact amount that has to be given as tax to the Government.
Tax Forms in US for Individuals
If you have to file the tax return in the US, form 1040 should be used. To report any specific income, deductions or credits, the forms have to be supported by additional documents that vary according to the states. Any tax consultant in your state will be able to identify and shortlist the formats that are to be submitted.
Medicare and Social Security Taxes
The US government also takes payroll taxes from its citizens which include the medicare and social security taxes. This social security tax is used to fund the retirement benefits that citizens in the US get. It is 12.4% for those self employed and those in regular jobs have to pay 6.2% of the income while the other half is equally matched by the employer.
Medicare tax, on the other hand, is flat 2.9% of any kind of wages, a person earns. You will automatically qualify for receiving these benefits post retirement if you pay these taxes.
Taxes are used for benefits of common people in all countries including the USA. Pay your taxes in time and benefit in return.
