Why is filing taxes in the US important?

MIAMI– Many people see filing taxes in the United States as a way to get money at the end of a fiscal year, but its importance goes beyond refunds, which also represent relief, especially for low-income individuals and families.

The United States is a country of great opportunities, but it also has a culture and strict tax laws that must be followed in order to enjoy all the benefits that this Great Nation offers.

To make an investment, create a company or buy property, US tax laws require tax returns for the last two, three years and even five years in some cases.

Therefore, to establish a company in the US, the first step is compliance with fiscal and tax laws, the same applies to making a small, medium or large scale investment.

Loans and investments

To apply for an investment loan, banks or lenders are required to ask for documents that identify you, along with your employment and tax returns.

In the purchase and sale of a home or any commercial property, the state and federal governments also require financial entities to provide tax returns of those involved as a fundamental requirement to close the deal.

But tax returns not only free you from problems with the American justice system and its tax system, but also represent an important door to receiving financial aid from local, state and federal governments.

When the COVID-19 pandemic reached the United States in 2020, President Donald Trump’s government proposed emergency federal aid to help individuals, families and businesses that was approved by Congress in Washington. For all of that government aid, the forms required your latest tax return and being up to date on debt payments to the Internal Revenue Service (IRS).

The people who automatically received the effective federal aid funds for the pandemic in their bank accounts were the taxpayers who had their tax status in order. That is, the federal and state governments give top priority to those who complete their tax returns on time and annually.

To obtain US citizenship

In the application to obtain naturalization (US citizenship), the tax return is reliable proof that you are eligible for that important legal status in the United States and that right is accompanied by the obligation to present your tax return to the Immigration authorities. taxes for the last five years or the last three if you are married to a US citizen.

So, if you want to remain in a comfortable and calm legal situation in the USA (avoiding sanctions or problems with Justice) and obtain direct and indirect benefits derived from the US tax and immigration system, you must file taxes in the US and pay them (when applicable), whether individually, as a couple or as a business owner/s; or as an owner of residential real estate.

In the United States there are three types of taxes; federal taxes, state taxes and local taxes.

State and local taxes are listed as income and sales taxes and vary by state. For example, Florida and Texas are two of the seven states that do not have a state tax in the US.

Federal taxes apply to income, property, and gifts you make individually or through a business or entity that you own or co-own.

income tax

Income tax is the tax that the US Government charges people and companies based on the income they obtain annually, whether from salaries, businesses or investments. And as part of that process you carry out two actions: the tax declaration and the tax payment, which is done automatically monthly or through different forms such as 1099 or others when you are a subcontracted employee, the company does not give you discounts. on your checks or you are a business owner at any rank.

When you are an employee of a company, generally using the W2 form you deduct the monthly payments that you must make to the federal or state government depending on your marital status (married or single), people under your financial responsibility or not (dependent on you). ) or as an individual citizen.

Almost always in the case of low salaries and families with little income, the federal and state governments reimburse them a part of what they have paid in a fiscal year through a table set by the Federal Tax Service.

This is another important reason why taxpayers in the United States must always have their tax returns up to date and proof that you are paying fees, as part of a payment agreement with that federal entity, or that you are not. You owe absolutely nothing, after deductions made by your accountant, agencies that work directly with the IRS, or yours when you prepare and file your taxes using the legal forms established by the IRS.

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