FAQ
USA

In USA there are 3 types of taxes:

• state taxes - they fund the government in the state,
• federal taxes - they fund the federal government,
• local taxes - they fund cities and towns.

Non‑residents of the USA are generally subject to state and federal taxes, which means they may be required to file both federal and state tax returns.

The state tax is paid in addition to the federal tax. It is applied to the aggregate of all income of an individual working in the USA except for the following 9 states:

• Alaska,
• Florida,
• Nevada,
• New Hampshire,
• South Dakota,
• Tennessee,
• Texas,
• Washington,
• Wyoming.

The state tax rate depends on the specific state. Some states have different tax credits, which can lead to different refund rates between federal and state taxes.

The local tax is used to finance public services (health, education, road maintenance and others). The amount varies depending on the country in which the taxpayer lives or works.

FICA (Federal Insurance Contributions Act) is the federal law on social security contributions. It is a federal payroll tax paid by both the employee and the employer. The amount of the tax is 6.2% for social security and 1.45% for health insurance.

A non‑resident who does not reside in the USA may be exempt from paying FICA. This includes foreign students, scientists, teachers, researchers, interns, doctors, au pairs, and others working in the USA on F-1, J-1, M-1, Q-1, or Q-2 visas.

Tax rates vary from state to state, and in California they can be as high as 13.3% for high‑income earners. However, in most states, including California, state taxes are single‑digit flat rates at low incomes.

In nine US states, there is no state income tax. These are:

• Alaska,
• Florida,
• Nevada,
• New Hampshire,
• South Dakota,
• Tennessee,
• Texas,
• Washington,
• Wyoming.

The federal tax rate ranges from 10% to 37%. Non‑resident taxpayers (foreigners working part of the year in the USA) cannot claim any tax benefits, which means you must pay tax on the first dollar you earn.

Taxable Income	Payable Tax
USD 0 – USD 11 600	10% of taxable income
USD 11 600 – USD 47 150	12% of the amount over USD 11 600
USD 47 150 – USD 100 525	22% of the amount over USD 47 150
USD 100 525 – USD 191 950	24% of the amount over USD 100 525
USD 191 950 – USD 243 725	32% of the amount over USD 191 950
USD 243 725 – USD 609 350	35% of the amount over USD 243 725
more than USD 609 350	37% of the amount over USD 609 350

Deadline for filing the federal tax return in USA is by the 15th of April for the previous calendar year.

Deadline for filing the tax return for the year 2023 is by the 15th of April, 2024. By this deadline it is also necessary to pay the tax.

Deadline for filing the state tax return in most of the USA states is the same as the deadline for the federal tax return. There are some exceptions, where the deadline differs, e.g. in Virginia the state tax return deadline is 1st of May.

Deadline for paying the tax is 15th of April.

You can claim your refund from USA up to 3 years back.

In 2024, you can file a tax return / claim a refund for the tax year 2021 at the latest.

Deadlines for the tax refund from the USA for the previous years:

• tax return for the year 2021 - 15th of April, 2025,
• tax return for the year 2022 - 15th of April, 2026,
• tax return for the year 2023 - 15th of April, 2027.

The tax office will process the tax return and then pay the overpayment. The whole process takes on average 2 ‑ 10 months from the time the tax return is filed.

The list of documents varies depending on whether the return is filed by a resident or a non‑resident. A non‑resident needs the following documents:

• A taxable income certificate (W-2) from each employer,
• a copy of the social security card to identify the social security number.

A resident also provides other documents to prove eligibility for tax credits (child's birth certificate...).

W-2 is a form that every employer must give to their employees at the end of the year. It is a certificate of the employee's annual income and the taxes withheld from each month's wages for the previous calendar year.

To obtain a W-2 form, contact your employer and ask them to issue the form. If you had more than one employer, you will need a W-2 form from each of them.

Social Security Number (SSN) is a unique 9‑digit identifier issued by the Social Security Administration. It is used to determine eligibility for Social Security benefits and certain government services.

Late filing of your tax return can result in a penalty in the form of a tax increase of:

• 5% to 25% for each month late - return filed within 60 days after the deadline,
• USD 485 or the full amount of tax due (the lesser amount applies) - return filed after 60 days after the deadline.

Contact the appropriate Internal Revenue Service (IRS) office to verify delivery.

The tax due may be increased by a late payment penalty because you filed your tax return after the deadline or paid the tax late. The remaining tax must be paid.

We will be happy to help you deal with this situation. Schedule a consultation and one of our tax specialists will contact you. Read how the consultation works or fill out the order form directly.

Unfortunately, cheque cashing is not part of our service. We recommend that you contact your bank or other financial institution to help you cash your check.