Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
If you are one of the millions of working people in the United States, you’ve probably noticed a few things about your paycheck, the most disappointing of which is the money that comes out. For some lucky workers in certain states, only Federal taxes are taken out. But for other workers, they are taxed on the state and local level, in addition to Federal taxes. What are all of these different taxes, and where do they come from? We’ll answer that below.
If you are one of the millions of working people in the United States, you’ve probably noticed a few things about your paycheck, the most disappointing of which is the money that come out. For some lucky workers in certain states, only Federal taxes are taken out. But for other workers, they are taxed on the state and local level, in addition to Federal taxes. What are all of these different taxes, and where do they come from? We’ll answer that below.
This amount is determined by the information you filled out on your Form W-4. This form is mandatory for your employer to have in order for you to pay federal taxes. If you do not fill out a W-4, your taxes will be withheld at the highest rate (single/zero). If you need help filling out your Form W-4, try using this calculator.
There are two types of State Income Tax that states impose on their residents: flat tax rates and graduated tax rates.
There is one last option for State Income tax – none! Because states can choose how and if to deduct state income tax, some states do not take it out. These states are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
Local income tax is levied by a local authority, for example a county or municipality. Only a few states impose local tax rates, and only in certain areas, as it is up to the country or jurisdiction to decide whether or not they want to impose local taxes. The following states have areas that levy local taxes: Alabama, Colorado, Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Oregon, Pennsylvania, West Virginia. No one expects you to know what all the local, state, and federal rates that apply to you are. That’s why we have PaycheckCity calculators! Use these calculators to determine what your take-home pay would be if you lived in a different state or city! If you’re thinking of moving, but want to take a look at the best and worst states for your paycheck, take a look at the Best Paycheck Cities in America Infographic.
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Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
Check out the updated 2024 Federal benefit limits for 401(k), HSA, and simple IRA, and more. Stay informed and plan your finances with confidence!