Acquired US citizenship? Know your tax liabilities
The United States of America is a land of opportunities where people from all around the world travel to for work, education, and other promising avenues. In many cases, the foreign nationals due to job necessities or for other benefits decide to settle down in the states itself.
Acquiring US citizenship is a long and time taking process. The aliens must give several exams, pass through interviews, and establish enough credibility to get the citizenship of the country.
However hectic it may sound, being a US citizen comes with its own set of perks. Not only do they have the right to vote and apply for federal jobs if they wish, but they can also benefit from the several tax laws that are otherwise restricted for the resident aliens in the country.
Keeping a track of all the different tax returns can be difficult for a new citizen. This is where the necessity of a tax consultation firm comes in. It is a firm that provides private tax consultation and manages clients’ assets.
The Accounting and Tax company is such an online tax consulting firm that gives citizens the best way to file their taxes. Once subscribed to its services, clients enjoy high-quality suggestions and actions taken by experienced professionals in the accounting and consulting field.
Still, with all the help available it is always recommended even by such firms that people be aware of the several taxes they owe the government.
In the US, the taxes are taken at the federal, the state, and in some cases at the local level. Each governing body does not interfere with the taxes levied by the others. While filing for tax returns the clients must make sure all the levels of taxes are cleared. There is also a special purpose tax.
The government mainly levies taxes on
- income
- payroll
- property
- sales
- capital gains
- dividends
- imports
- estates
- gifts
- various fees
A few of the most common taxes are discussed below:
Income tax
Probably the most known tax around the world. Income tax is charged in most countries around the world. Even in the US, any individual who earns over a specific amount is liable to income taxes.
This tax is charged at two different levels of the government. Federal taxes include social security and FICA. If individuals earn over 6,750 USD they must file for both federal and state income tax returns every year before April 15th.
Sales Tax
This is another common tax in the United States. Citizens pay sales tax to the government for any item they purchase. The exact value of sales tax can vary from state to state. While NY has a sales tax of 7% the same tax is just 3% in NJ.
The state and the local authorities have the right to change the sales tax on particular items on how they see fit. They may also decide on which items may be tax-free.
Property Tax
Property is generally considered to be any realty a citizen owns in the country. The authorities issue a tax on the fair market value of the property. Depending on the state, property taxes
vary from 0.2% to 1.9% of the total property value.
Knowing about the taxes not only speeds up the filing process but also helps dismiss any doubts regarding unnecessary money spent.
