Overview Tax Laws and Its Forms

The government cannot exist without financial means, so tax filers are forced not to evade taxes. The tax system has existed on earth for thousands of years. It appeared immediately, as soon as the first states arose.

Taxes are the means for keeping:

  • the state apparatus;
  • army and police;
  • for the construction of roads and public facilities.

Over time and with the development of human society, the functions and objectives of the tax system gradually expanded. In a modern civilized state, taxes are used not only to support the state but also to solve social problems.

Because of the misunderstood tax forms, you may encounter a number of problems when completing the declaration.

What Are the Forms of Tax Law?

The tax legislation of the USA consists of approximately 11 volumes of 1000 pages each. About 3% of these volumes change annually.

There are two main forms of tax law: federal and state. It is important to understand the differences between them in order to avoid serious mistakes and consequences. Since such mistakes will cost you not only wasted time, but also money.

Tax evasion is considered a very serious crime in the United States. Penalties vary from arrest of property to imprisonment. In the US, there is a special tax court that conducts tax processes.

Federal Tax Laws

The main tax in the US is the Federal Income Tax, which has been collected since 1913.

Federal tax is the same for all US residents, regardless of the state. This tax is calculated on a progressive scale and on special tables. The amount of this tax will depend on a number of factors. For example, whether you will serve it with your spouse (or you can do so), the result will be different. Please note that this or that variant has various benefits.

  • You can receive wages already with the deduction of this tax (the employer will pay it himself).
  • If you work for yourself, it is already your duty (you will have to pay this tax yourself at the end of the year).
  • In most cases, taxpayers are required to independently fill out a tax return in which they register the number of revenues received for the year.

Further, the filled in declaration together with the check is sent by mail to the local or federal tax authority.

State Tax Law

In comparison with federal taxes, the state tax receives little attention. However, these taxes can bring you significant losses in your wallet. Federal laws that regulate business are not that many. But each state has its own corporate legislation. Moreover, this legislation is very different between states. Taxes vary between states. The amount of this tax directly depends on where you live and how much you earn. Such taxes are managed by the tax department, the revenue department, the state controller and the state treasurer.

In this regard, lawyers have to take exams to know exactly the laws of the state in order to obtain a license in a certain state.

If you just work as an employee in one state, you get a salary then you will file your tax return without problems.

Hence, taxes in the US is a very serious topic, and failure to pay taxes or conceal income is very seriously punished even by imprisonment. Therefore, it is worth taking this issue very seriously. If you cannot figure out how much you need to pay and how to fill out a tax return, be sure to contact the professionals.