Clear Tax Filer

📍405 State Highway 121, Suite A250

The federal government enacts federal income tax legislation that applies to all individuals and businesses in the United States, regardless of their location. The legislation sets different tax rates for different income levels, with the lowest tax rate starting at 10% and the highest rate currently at 37%. Tax bracket is determined after calculating taxable income, taking into account deductions and personal exemptions. Once calculated, the tax liability may result in either a refund if overpaid or a bill if not enough taxes have been paid during the year, with most employees receiving a refund.

It’s important to note that while federal taxes are uniform across the United States, state taxes can vary greatly. Some states have a flat tax rate while others use a progressive system, where higher earners pay a higher tax rate. It’s important to take into consideration state taxes when evaluating the cost of living in different locations, particularly if you are considering relocating for work or career opportunities. Additionally, it’s important to note that income taxes are not the only form of taxes that states use to generate revenue, property taxes, sales tax, and other measures also play a role.

What’s the Difference Between State and Federal Income Taxes?

Federal income taxes are collected by the Internal Revenue Service (IRS) and state income taxes are collected by the state government where the taxpayer resides and earns income. It can be complex when a taxpayer lives in one state and works in another, which was common during the pandemic. The federal tax system has multiple tax brackets ranging from 10% to 37% based on income and filing status. At the state level, some states have a flat-rate tax system, while others use a progressive system, and some states don’t have an income tax.

What we do at Clear Tax Filer?

At Clear Tax Filer, we understand that navigating the complex world of taxes can be overwhelming and stressful. That’s why we specialize in providing individuals and businesses with comprehensive tax filing services. Our team of experienced professionals is well-versed in the latest tax laws and regulations, and is dedicated to helping our clients meet their tax obligations on time and accurately.