Help With Income Taxes + Tax Return Preparation Planning [Tax Related Services, Fremont Ca]

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Tax Return Preparation – A Look at the Different Types of Taxes
Taxes are the main source of revenue for any government, but the type and structure of taxes is different for each country. The most talked about form of tax is the Income tax, it being a direct tax payable by all individuals including salaried, self-employed and business professionals.
While income tax returns for Individuals in Hayward / Fremont and in other areas of U.S offer the maximum contribution towards national revenue, there are many other types of taxes that one needs to be aware of.
Here is a quick look at some of the major forms of taxes collected in the United States.
Income Tax: Income Tax contributes heavily towards the total kitty of taxes in the U.S. Americans pay almost 35% of their earnings as income tax. Normally corporations are taxed based on their profits, while individuals pay taxes on their gross income. In most cases, people tend to pay more than the due amount, in order to avoid delays, tax audits and penalties. Any excess amount paid can be claimed back as tax refunds.
Capital Tax: As the name indicates, this is a tax levied on capital i.e. profits earned by selling stocks, bonds and property. If an individual or firm suffers losses on sale of an asset or property, they are eligible to deduct the entire amount (loss) from their income during tax return preparation.
Property Tax: Property taxes are direct taxes levied on real estate including homes, land and building. These are one of the biggest sources of revenue for local governments, and are imposed annually based on the assessed cost of an individual’s property. If you are planning to file tax returns for Estates Hayward / Fremont, you must know that property tax is levied on land, improvements to land (immovable man-made objects), and personal property (movable man-made objects).
Sales Tax: Sales tax is imposed and collected by the state, making it an important source of revenue for the state. Tourism destinations especially benefit from sales tax, as tourists/visitors living outside the state also contribute towards it while buying goods & services in that particular state. Cities like Hayward/Fremont in California levy a sales tax of 7.75% on goods, which can add up to 9.75% with local taxes included.
Excise Tax/Duty: Excise duty is a kind of indirect tax levied on goods manufactured within the boundary of a country including imports, tires and gasoline. Rate of excise is decided by the federal government; while on some products it can be kept quite high, certain products can be exempted from excise duty completely. Excise taxes are also collected on products such as cigarettes and alcohol.
Payroll taxes – Payroll tax is levied on the salaries and wages of individuals working in the U.S. This is a source of funding for social security as well as Medicare that is provided for by the government. Payroll taxes have grown by a significant margin over the years, contributing up to 36% of towards federal income.
The above mentioned taxes are some of the major forms of taxes you pay directly or indirectly, to the U.S. government. However when it comes to filing tax returns for Corporations Hayward / Fremont or for individuals, income tax is the only tax one needs to be concerned about.


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