The prospect of filing a tax return can be daunting, so it makes sense to seek help with tax planning and preparation. But what happens if you don’t solicit the right help?
There are numerous dubious tax companies out there in the market who boast about how much they save their customers on their tax bill or claim they can retrieve inflated tax refunds. However, it’s vital to ask yourself - those companies are really the best ones to handle your tax affairs? After all, if you choose the wrong company, and submit incorrect information on your tax return, you will be seen as fraudulent by the Internal Revenue Service (IRS), resulting which you may have to pay hefty fines and penalties.
Need help with your taxes?
Whether you’re self-employed or working for an employer, you are required to pay taxes, depending upon your assets or income. It is wise to take help from professionals in tax preparation and planning. Columbia MD Accountants, the most popular, authentic, and trustworthy tax preparation columbia md, will make sure that your tax-filing experience is hassle-free and all your forms are accurate and filed on time. Not only they’ll assist with the tax return preparation and planning, but will also offer a comprehensive service backed by their highly skilled and professional consultants.
What income tax to pay in the US?
Working in the US means you'll probably have a number of different taxes deducted from your income when you're paid. This tax preparation Columbia MD will explain in detail what type of tax you are required to pay, and how to claim tax refunds. Exactly what amount of tax you need to pay will depend on what you earn and where you work, as taxes vary by state.
In the US, you may pay up to four different types of tax:
- Federal Tax: The US constitution has authorized the federal government to collect taxes from you on the basis of your income, the value of assets, or expensive gifts. These taxes are automatically deducted from your regular income, and the tax rate ranges anywhere between 10% - 37%.
- State Tax: Every state in the US has its own tax laws. Some states levy a state income tax, whereas some don’t. Columbia MD Accountants will let you know whether or not you need to file a state return tax and will help you with tax preparation. As for Maryland, the tax rate for average incomes ranges anywhere between 2% - 3%.
- Federal Insurance Contributions Act (FICA) Tax: This tax amount is deducted from your paycheck and is steered into the Medicare and Social Security Funds. FICA taxes are the mandatory contributions for both employees and employers. The current tax rate is 7.65% (combining a 6.2% Social Security tax rate and 1.45% Medicare tax rate).
- Local Tax: This is the additional tax imposed by a local government to fund local programs such as education, parks, hospitals, and community improvement.
The affordable and professional services of Columbia MD Accountants would sure make the complex US tax system simple for you. Their experience and knowledge will get the maximum amount of US tax back you are owed. The meticulous approach employed by the accountants combines their tax expertise with online convenience, making them the right choice for all your tax needs in the US or anywhere across the world.