Almost any person living and earning in the United States is required to pay both State and Federal taxes. This has to be done before April of every year which is the financial year. The taxes are due by April 15th each year and unless it falls on a long weekend, you cannot escape it. Even before we consider paying takes you should know the difference between State and Federal taxes. In case you do not have your finances in place, you should consider taking a loan and pay it off. Not paying taxes is a State and Federal offence.
A title loan is helpful to bail you out in such difficult situations. There are quite a few lenders who often such loans.
The State income tax is a portion of tax that comes from your own income. These taxes are utilized for funding the state for various projects. The charges vary depending on the State that you reside in. For example, certain states like Nevada have no tax. The tax charges are listed clearly on the IRS website of the United States.
Your income also determines the amount of State tax that you are required to pay. The more the money you make the more tax you will be required to pay. These taxes are also further divided into brackets and are broken down for your better understanding. The percentage of tax is purely dependent on the income bracket that you fall into. Typically, these taxes are cut from your monthly pay check. However, it is important to file the returns at the end of the financial year.
Federal income tax is also deducted from your income. The government uses the tax for funding of the entire country. This kind of tax payment is standardized and is not dependent on the State of residence. Just like State taxes, Federal taxes are also divided into brackets.
The Federal government gives certain benefits for people who fall under the lower income bracket. Here is a brief list of Federal tax categories:
These taxes are used to maintain all the amenities provided by the State and Federal government and it is mandatory to pay them.
Apart from these there are other types of taxes as well like Sales tax, Federal Insurance Contributors Act, which you will be required to pay.
SO in total you will be paying nearly 40% in taxes altogether. Either have a shoe box plan to pay your taxes every year or consider applying for a title loan well in advance.