In the United States, whether you are a citizen or an immigrant, you are expected to pay tax on your income if you earning is more than a certain amount. You will be required to file annual income tax returns as determined by the federal as well as the states. This will contain details of the income earned in the current year. Also, you will enclose any payment due. The IRS (Internal Revenue Service) handles paying taxes in the US on behalf of the federal.
Critical Things to Note about Paying Taxes in the US
• The law may still require you to file tax returns even if you are not having any outstanding tax payment.
• You may possibly get a tax refund in a situation where taxes are regularly deducted from your weekly paycheck.
Also, for any income you earn while living in the United States, both the states and federal will require you to pay taxes under the following conditions:
• Where you earn a gross income that surpasses a minimum amount based on your marital status, age, or position in the family (e.g. being the family)
• Where your status matches the requirements put in place by IRS to determine tax filing. These statuses are citizen, resident or non-resident alien.
Preparing Your Tax Returns: Which Service is the Best?
When it comes to paying taxes in the US, there are some major services in the country to consider. They are HR Block, Liberty Tax, and Jackson Hewitt. No doubts, these three are the renowned professional tax preparers in the country. However, your experience with any of these services will depend on the efficiency of the individual handling your tax filing.
Not long ago, these three major players published their tax return filing charges as follows:
> Jackson Hewitt: cost per filing is $208
> Liberty Tax: cost per filing is $173
> H&R Block: cost per filing is $169
Obviously, H&R Block has the lowest cost per file returns filing. However, you need to check the most current rates comparison.
You can choose to file your own tax returns. There are free online software tools to assist you.