Tell me about income tax since I am new in USA?
- JudyLv 71 decade agoFavorite Answer
First, welcome to the USA.
Federal income tax is an amount of money charged by the government on whatever income you have. In the USA, it's a graduated tax, which means that the more you make, the higher rate you pay. People who make below a certain amount don't pay any income tax, then it can go up as high as 35% for income over a certain amount.
There are allowances given for certain items that you might pay out - these get taken off your income before your tax is calculated. There are two types, adjustments and deductions - you probably don't care at this point about what fits into which category. There is also something called exemptions - this is a flat amount of money subtracted from your income for each person you are supporting that meets certain qualifications.
There are also credits - these are amounts that are subtracted directly from your taxes after the amount due is figured.
This is a very short, rough description of US income taxes. For more detail, you can go to irs.gov, the official site of the Internal Revenue Service, the government branch that collects this tax.
Many states and municipalities also levy a tax on income. The amount if any depends on where you live and/or work.
- acmeravenLv 71 decade ago
Income tax is what the government takes from you as a worker to give to those who don't want to work so they can live the american dream.
- 1 decade ago
I don't really know a lot about it, the only thing I know is that it is UNAVOIDABLE and it comes to hunt U every end of year. I hope I did't scare u off US(Its not that bad) Oh, it also has to do with how much money u make per year.