2006-08-03 09:49:12 · 6 answers · asked by Korbat N 1 in Business & Finance ➔ Taxes ➔ United States
Yes, you have to pay federal income tax. Your employer is not required to withold federal, but if they don't, then you are liable for it at the end of the year. As far as state, that depends on the state, Washington, for example, does not have a state income tax, but Missouri does.
2006-08-03 09:55:13 · answer #1 · answered by Brent M 2 · 0⤊ 1⤋
Yes. In America, everyone pays some sort of a tax.
When you get a job, you will pay federal tax. Also, you will pay state and local taxes also.
Then, you will get insurance premiums taken out.
It is a formula according to your "gross" income. For example, if you make $2000 a paycheck, they might take out 10% for federal, 5% for state, and 1% for local. Therefore, it's $200 for federal, $100 for state, and $20 for local. If you made $5000 a paycheck, your federal would be $500, state is $250, and local $50. This is just an example.
However, the more you make, you may be put in a higher "tax bracket" where the formula is different.
Federal and State are mandatory taxes. You may elect to take out extra taxes in your paycheck (generally called exception status).
Then, at the end of the tax year, another formula comes into play. For example, if you made $50,000 a year, the formula might say your tax liability is $7000 for the year. If your "total" for the year of taxes taken out is more than the tax liability, you receive a "refund". If it's under, you'll end up paying, which means you didn't have enough taxes taken out during the year.
2006-08-03 10:00:32 · answer #2 · answered by Scott D 5 · 0⤊ 0⤋
most states have income tax. others do not. Florida for example does not. other state income taxes range from about 3% to 8%.
you will have to pay Federal tax. anywhere from 10% to 35% of your income based on a marginal tax bracket system and your level of income.
you will have to pay FICA, which is made up of Social Security and Medicare taxes, which are Federal taxes - 7.65%
you might have to pay a local or county income tax. those are becoming more frequent and can range from 1% - 2%.
2006-08-03 09:55:20 · answer #3 · answered by g-man 3 · 0⤊ 0⤋
it varies with your income level and source of your income, but expect to hand over at least 30% of your earnings to the government. yes, State and Federal
2006-08-03 09:54:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
yes, well some states tax more than others, some states do not have a personal property tax, some have little to no sales tax, others tax you up the AZZ for everything
2006-08-03 09:53:31 · answer #5 · answered by flyatvne 2 · 0⤊ 0⤋
Depends on the state.
2006-08-03 10:00:01 · answer #6 · answered by billybetters2 5 · 0⤊ 0⤋