Levels of taxation in the united states. In the United States, taxation, both for personal and business income, is divided into three levels:
-Federal taxation. Income brackets calculate income tax at federal level with progressive rates for individuals. For corporation-type companies, taxation takes place with -a flat tax of 21%;
-Taxation at the State level. Taxes in the various states of the United States of America are typically calculated using a fixed rate. There are cases in which, even here, taxation is calculated by income brackets with progressive rates. State taxes are much lower than federal taxes.
-Taxation at the local or city level. It is present only in a few situations, for example, in the case of the city of New York. Both state and local taxes are deductible for the purposes of calculating taxable income at the federal level;
-Indirect Taxes in the United States: the Sales Tax. In the United States, there is no VAT. By far the most common indirect tax is the sales tax which is applied at the state and local level. Unlike VAT, the sales tax is not a cascade tax and is applied only in the last step of distribution, or when it is sold to the final consumer.
Deadline for filing a U.S. tax return
From 2019, the deadline for submitting the tax return is April 15 of each year, with reference to the previous year.
This deadline concerns the tax returns of individuals, LLCs, partnerships and all types of companies.
Taxation in the united states of personal income
Individuals who are fiscally resident in the United States are subject to tax on their income from whatever source and anywhere in the world. Non-resident individuals are taxed only on U.S. source income as remuneration for services rendered in the United States, interest on bank accounts opened in the United States, etc.
It is also important to note that tax residents are taxed on capital gains, while non-residents are also exempt with regard to capital gains derived from the sale of shares in an American company.
The tax residence for individuals
An individual becomes a U.S. tax resident if he or she meets one of the following conditions:
If you are a U.S. citizen:
-If you have obtained residence in the United States (so-called Green Card);
-If it is physically present on the national territory for at least 183 days during a calendar year;
-Or, if it exceeds the c.d. “Cumulative Presence Test”. This consists of the sum of the total number of days that the person is present in the United States in the reference year, plus a third of the days in which he was present during the previous year, and a sixth of the days of the previous year. If the sum obtained is equal to or greater than 183 days, the foreign person is treated as a tax resident in the United States.
The only exception to the Cumulative Presence Test, for those who fall back, is to demonstrate that their main centre of activity is not in the United States and that their family and social ties are closer with another country than with states. United. It is not necessary to prove that the person has tax residence in another country.