The United States imposes personal taxes on its citizen’s as well as resident’s worldwide income. Non- resident persons or aliens are taxed on their income, generated from a US-based trade, business, or US-sourced income. Zakir Tax & Accounting is the best CPA firm in New York to handle your personal tax issues.
The federal, most of the states, and many local governments collect income tax from their respective areas of authority. This tax rate usually rises along with an increased amount of income. However, there are deductions on the total income, depending on various grounds. However, the income brackets are often adjusted slightly for inflation.
Keeping in line with the previous years, the federal income tax rates remain the same for the 2020 and 2021 tax years: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Regardless of your income origins or expenditure categories, you will not be charged above 37%.
If you belong to the 37% tax ceiling, your entire taxable income is not subject to this highest cap. Rather, it resembles a progressive curve. You pay according to the level of your income.
For example, as the head of household, you have a taxable income of $14,700. Now, you pay 10% on the first $14,100 and 12% for the rest $600. This is how the tax rates gradually develop along with the income ranges.
The rates also vary, based on your tax filing category- single, married filing jointly, married filing separately and head of household. You enjoy waivers depending on your responsibilities. For example, single filers pay 10% on their first $9,875 of taxable income whereas the head of household pays 10% up until $14,100.
There are tax breaks and deductions at many levels and Zakir Tax & Accounting is your ultimate guide to exploit all those opportunities. We provide the best financial services in New York. Call us now.
We Solve Tax Problems: An Experienced, Friendly Tax Team in New York
Our primary focus is tax law, including matters such as state and federal tax debt, audits, investigations, and tax preparation. Local Texas clients will have the opportunity to meet face to face with a Zakircpa Office.