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Tax guide (United States)

High-level reference only — confirm amounts and rules with the IRS, your state, or a tax professional.

Main US taxes

Federal income tax

Individual income tax (Form 1040)

  • Progressive brackets; rates change with tax law
  • Withholding on wages or estimated payments if self-employed
  • Credits can reduce tax dollar-for-dollar
  • Due mid-April for calendar-year filers (extensions give time to file, not to pay)
FICA payroll taxes

Social Security & Medicare (W-2)

  • Employee + employer shares on wages
  • Additional Medicare tax can apply over thresholds
  • Shown on pay stubs; reconciled on your return if needed
State & local income

Varies by state (and city)

  • Some states have no individual income tax
  • Others use progressive or flat rates
  • Due dates often align with federal but not always
Real property tax

Local tax on real estate

  • Assessed value × millage / rate (jurisdiction-specific)
  • Often deductible on Schedule A if you itemize (SALT limits apply)
  • Installment schedules set locally
Sales & use tax

State and local consumption taxes

  • Collected by sellers or self-assessed on taxable purchases
  • Not a federal “VAT”; rules differ by state
Self-employment tax

Social Security & Medicare for self-employed income

  • Schedule SE with Form 1040
  • Often paired with quarterly estimated tax (Form 1040-ES)

Typical deadlines (calendar year)

Item Typical date Notes
Individual return (Form 1040) April 15 Weekend/holiday adjustments apply; payment due even if you extend.
Six-month extension to file October 15 Extra time to file — not extra time to pay tax owed by April deadline.
Q1 estimated tax April 15 Form 1040-ES; dates for subsequent quarters: June 15, Sept 15, Jan 15 (next year).
W-2 / certain 1099 delivery January 31 (payer) Employees/contractors use forms to prepare returns.
State income returns Often April 15 Confirm with your state; some differ.
Property tax installments Local County/city schedules; penalties for late payment vary.
Penalties and interest

Underpayment and late filing can trigger IRS and state penalties. If you owe, pay as much as you can on time and consider an installment agreement.

Credits & deductions (federal, common)

Standard vs itemized

Choose the larger benefit

  • Standard deduction: fixed amount by filing status (indexed for inflation).
  • Itemized: Schedule A — medical (above AGI floor), SALT (cap), mortgage interest, charitable gifts, etc.
Child tax credit

Per qualifying child

  • Phase-outs and refundability rules change with legislation — verify for the tax year.
Earned income tax credit (EITC)

Refundable credit for lower-income workers

  • Income limits and investment income tests apply.
Education credits

American Opportunity & Lifetime Learning

  • Eligibility, caps, and phase-outs differ; compare to tuition deduction rules if available.
Mortgage interest

Schedule A if itemizing

  • Limits on loan amount and use of proceeds; Form 1098 from lender.
Clean energy credits

Residential energy (IRS Form 5695, etc.)

  • Rules and percentages updated by Congress; keep manufacturer certifications.

Filing, paying, and fixing mistakes

  1. Gather forms: W-2, 1099s, 1098, receipts for deductions/credits.
  2. Choose method: IRS Free File partners, commercial software, or a preparer.
  3. Submit: E-file preferred; mail if required.
  4. Pay balance: Direct Pay, card, or installment agreement if needed.
  5. Refund: Track with “Where’s My Refund?”

Illustration only — use official brackets for the tax year.

Federal income tax is usually marginal: each rate applies only to income inside that band after subtracting deductions.

Example: if taxable income falls across three bands, you sum the tax from each slice — you do not pay the top rate on every dollar.

  • IRS Direct Pay — bank transfer for balance due or estimated tax.
  • EFTPS — enrollment required for businesses and some individuals.
  • Debit/credit card — via IRS-approved processors (fees apply).

Always keep confirmation numbers and match payment to the correct tax year and form.

Use Form 1040-X to correct income, deductions, credits, or filing status after you have filed.

States have their own amendment forms. Allow time for processing before expecting refunds or bills.

  • Returns and supporting documents (often 3–7 years depending on situation).
  • Proof of basis for investments and home improvements.
  • Business mileage logs, receipts, and bank statements for Schedule C.

Common situations

W-2 employee
  • Withholding on each paycheck; year-end W-2.
  • May only need Form 1040 + standard deduction if finances are simple.
  • HSAs, 401(k), and pre-tax benefits reduce taxable wages.
Independent contractor
  • 1099-NEC or other 1099s; no employer FICA withholding.
  • Schedule C for profit/loss; Schedule SE for self-employment tax.
  • Quarterly estimated taxes usually required if you expect to owe.
Small business owner
  • Entity type (sole prop, LLC, S corp, C corp) changes forms and payroll rules.
  • Payroll taxes if you have employees; separate business bank accounts strongly recommended.
Retirees
  • Social Security may be partly taxable depending on other income.
  • RMDs from traditional IRAs/401(k)s; Roth rules differ.
  • Medicare premiums and IRMAA can interact with MAGI.

Worked examples (illustrative)

Simplified bracket example
Hypothetical rates (not official)
  • First $11,000 of taxable income: 10% → $1,100
  • Next $33,000: 12% → $3,960
  • Illustrative total on $44,000 taxable: $5,060 before credits

Replace with IRS Publication 17 brackets for the year you are filing.

Property tax rough estimate
Assessed value $300,000; combined rate 1.2%
  • Annual tax ≈ $300,000 × 1.2% = $3,600
  • Often split into two installments (local rules).
Estimated tax “safe harbor” idea

Owing too little through withholding + estimates can trigger an underpayment penalty. Many taxpayers aim to pay at least:

  • 90% of current-year tax, or
  • 100% of prior-year tax (110% if higher income) — IRS exceptions apply.
Side gig snapshot
$24,000 gross receipts, $8,000 expenses
  • Net profit on Schedule C: $16,000
  • Income tax on profit + self-employment tax (roughly Social Security + Medicare on 92.35% of net, with half deductible above the line)

Use tax software or a preparer for exact SE tax and quarterly vouchers.

Using Hellozon
  • Track deadlines, documents, and amounts in one place.
  • Set reminders before IRS and state due dates.
  • This guide is educational — not individualized tax advice.