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Old 04-13-2008, 12:19 AM
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Default Income Tax

I need to find out how much tax is to be paid on any income in Washington State. Is it a fixed percentage, or are there tax bands, etc?

Any additional taxes?

What sort of things off set tax there?

Also, does everyone in the US have to file a tax return? Eg, if you get paid a salary, would it be automatically taxed so that you do not have to file a return (assuming you had no other source of income)?
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Old 04-13-2008, 12:54 AM
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There is no state income tax in Washington State, just the US Federal Income Tax. And sales tax. You are required to file a federal tax return. Even if your salary is automatically deducted for taxes, it's almost always going to be a little off...plus this year in order to stimulate the economy, the Federal Government is going to be sending taxpayers a stimulus check of between 300-1200 dollars, but only if you file your taxes.
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Old 04-13-2008, 12:59 AM
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The answers to your various questions are quite complex, because the personal income taxation system in the U.S. is quite complex. I will try to keep my answers absolutely to the simplest dimensions of your questions.

"... in Washington State": Personal income earned within Washington state by residents of Washington state is not taxed by Washington state; but all residents of Washington state, if they earn income in the U.S., probably pay federal (national) U.S. income tax, with very few exceptions.

"... tax bands" in the U.S. are called "tax brackets".
Yes, in the federal U.S. income tax picture, there are different tax brackets, depending upon how much income is taxable. There is no fixed percentage for all workers, such as Japan's 10%. All tax brackets depend on how much of an individual's income is taxable.

"Any additional taxes?" On income? -- not for residents of Washington state. Since I know you're interested in moving to Washington state, I won't discuss the possibilities for any other state. (In Washington state there are property taxes on real estate, sales taxes on goods and services purchased, etc. but these are not taxes on income.)

Tax offsets, called here deductions or credits: yes, there can be many, depending on each individual's, or each family's, particular situation.

No, every resident of the U.S. does not have to file a tax return. Every person in the world who earns income in the U.S. usually is required to file a U.S. (federal) income tax return. There are exceptions, but they are quite few.

Salaries and wages paid by an employer automatically have amounts withheld (sent to the government) at every payday; those amounts are called withholding, or tax withheld.
The amounts thus withheld are decided based on tables provided by the U.S. taxing authority, the Internal Revenue Service, known as the IRS. The employer simply follows the IRS requirement.
At the end of the year, the total amount withheld might be too much, or too little, or just right. It makes no difference -- every person residing anywhere in the world who has earned income in the U.S. is almost always required to file an income tax return, with very few exceptions.

Since Washington state and all the counties and cities within Washington state do NOT levy an income tax on individuals, the only taxing authority you would probably have to deal with when you move here is the IRS. This is their website. Every imaginable bit of information you might want is on this website.
Internal Revenue Service
and the section for Individuals:
Tax Information for Individuals

However, current interpretations of all the IRS information we leave to the masters of the subject, tax accountants, usually tax Certified Public Accountants (CPAs), whose career is dedicated to comprehending the extremely complex, sometimes strange, and always-changing IRS rules.

If you have more questions, we'll do our best to answer.

Last edited by allforcats; 04-13-2008 at 01:34 AM..
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Old 04-13-2008, 01:02 AM
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Chenebe, please ignore the information another poster provided about a "stimulus check". That has nothing to do with you.
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Old 04-13-2008, 11:13 AM
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Sorry. I probably wasn't clear. Never intended for Chenebe to think that the stimulus check was coming her way. She'd asked if everyone had to file, and my mentioning this years stimulus check was to suggest that is only for those people who do file.
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Old 04-13-2008, 02:28 PM
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Dang, and I was budgeting in that stimulus check! :P

Thanks for your replies, both.
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Old 04-13-2008, 02:50 PM
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Quote:
Originally Posted by Ira500 View Post
There is no state income tax in Washington State, just the US Federal Income Tax. And sales tax. You are required to file a federal tax return. Even if your salary is automatically deducted for taxes, it's almost always going to be a little off...plus this year in order to stimulate the economy, the Federal Government is going to be sending taxpayers a stimulus check of between 300-1200 dollars, but only if you file your taxes.
1800 + for some people.....who qualify...

Me + wife + 2 kids = 1800 bucks.

How Much Will You Get?
Qualifying single filers (AGI less than $75,000) will get rebates of up to $600. Qualifying couples (AGI less than $150,000) will get rebates of up to $1,200, plus $300 per dependent child, with no maximum on the number of eligible children.

The 2008 IRS Tax Rebate Checks Details
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