There are two tiers of tax systems in the US, federal taxes and state taxes. Depending on your level of earnings and exemptions etc, everyone of working age is liable to the federal government for taxes. However, not all states have an income tax system. This is primarily because some states are able to raise sufficient income to run their affairs without having to set up a state tax. Most notable of the states that do not set state taxes are Florida and Texas.

All adults must file a federal tax return whether they owe taxes or not. Even if your employer deducts your taxes at source you are still required to file a tax return as you may be entitled to a tax re-bate. Many experienced Americans handle their own tax affairs without the need for an accountant.

Accountants are generally called Certified Public Accountants (CPA). It is probably a good idea to get in touch with a CPA as soon as you can so that with the benefit of their advice you can quickly adapt to the US way of doing things. This would be even more time-critical if you have entered the US in order to start your own business.

If you owe taxes it is advisable to pay them quickly as late payment can result in regular monthly fines and penalties for each month the debt is outstanding. Put it another way, it would be cheaper to use your credit card to pay off the government rather than to keep them waiting for their money. Again, working closely with a CPA will be very useful.

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