Today we will talk about the US tax system. As with credit history, the tax system is very different from the Russian one. Rather, the system is about the same, with the difference that in the US it is actually used. So before you rejoice in high salaries, you need to know how much of this salary will go to taxes. And also why many Americans get their taxes back and how to formalize them. To begin with, you need to apply for taxes at the beginning of the year for the previous calendar year. This can usually be done from January until April 15th.
By this time, the US state should receive your documents, which will indicate the total amount of income, the amount of taxes already paid, and the amount of tax that you owe to the state on the calculator-385506. Some people handle all the paperwork themselves, but most Americans hire an accountant who specializes in these things. If you feel like you’ve paid too much taxes, it makes sense to ask for help. In many cases, an accountant will be able to return some of the money to you. You can try your luck on your own, but you need to know what you can write off as costs, what actually refers to costs and what not, AND not exceed the maximum write-off limit. More often than not, you will be able to write off as costs what is relevant to your job. Some activities allow dining out as a business meeting.
Sometimes, if you work from home, your rent may also be written off as an expense. We strongly recommend that you keep receipts throughout the year, since when contacting an accountant or self-calculations, you need to have proof of all the amounts. After you have all the necessary documents, you send them by mail. If you owe money to the US government, you will be offered several payment options. You can send a check for the full amount or request payment in installments. Thus, if you unexpectedly owe more money than you expected, you have the option to pay gradually. If the government owes you money, you will receive a check to your address in a fairly short time. If you work for a company, when you apply for a job, your employer will give you a Form W-4 in which you need to select the tax amount you want to deduct from each check. 5 taxes will be deducted from each check – social security tax, Medicare, State tax, city tax and income tax.
On average, everyone pays taxes in the amount of about 40% of their salary, the percentage varies on the amount of income. In the United States, the more profit you have, the greater the total amount of taxes. You will be asked to decide how much taxes you want to pay monthly. You must choose one of 4 tax payment options. This is usually indicated by numbers from 0 to 3. Zero means that you will pay the maximum monthly percentage of your salary. This is convenient because when calculating the total income, you will most likely receive part of the taxes back. This is the so-called safe option.
