Is it illegal for the US government to levy personal income tax?

It is legal for the US government to collect personal income tax.

Brief introduction of American personal income tax

1. Personal income tax is a kind of tax that is taxed on personal income and paid by individuals who obtain income. Personal income tax is a common tax levied by most countries in the world at present, and it is an important source of national fiscal revenue. It has the social function of narrowing the gap between the rich and the poor and realizing social equity. 19 13, the us congress passed the individual income tax law. After nearly a century of rapid development, personal income tax has jumped from a secondary tax to a major source of federal income. The federal, state and local governments in the United States all levy personal income tax.

2. What kind of people should file tax returns in America?

Permanent residents, citizens and taxpayers in the United States need to declare their income and assets to the IRS. If you land in the United States before 20 13 12 3 1 and get a green card, you need to declare the tax of 20 13.

Second, the time when American green card holders must file tax returns.

On April 15 every year, you need to submit the tax bill of the previous year to pay back the tax arrears (the deadline for filing tax returns on April13 is April/0/4). If you are an American resident whose main place of work and residence is overseas, you can declare for two months, that is, June 15. If it is too late to file, you need to apply for an extension of filing (fill in Form 4868) before the deadline, and postpone it to 65438+1October 15 of the current year, but you still need to pay the outstanding tax before April 15.

Brief introduction to the method of filling in tax returns

1 ? Log on to the website of State Taxation Administration of The People's Republic of China, www.irs.gov, download the free form and file your own tax returns;

2. Use tax filing software, such as Turbo Tax, H& etc. RBlock, TaxAct, etc. ;

3. Ask professional accountants/tax agents to file tax returns on their behalf.

In what capacity should green card holders file tax returns?

1. How do green card holders file tax returns: Taxpayers in the United States have five identities, namely, single, head of household, married-joint tax return, married-separate tax return, and widowed [er]. If taxpayers meet more than one status category, they can choose the category with the least tax obligation.

2. Do I have to pay taxes after filing?

Tax declaration and tax payment are two different concepts. As a permanent resident or citizen of the United States, filing tax returns is an obligation. As for whether to pay taxes, it depends on the deduction of income and expenditure in that year. It is entirely possible that you will not only pay taxes, but also get a tax refund.

4. 1. Do green card holders need to declare overseas bank accounts?

If the total amount of all overseas financial accounts of green card holders exceeds USD 65,438+0,000 on any day of each year, they must file an FBAR form (TDF90-22. 1 form) with the US Treasury before June 30th of the following year. The definition of financial account includes bank account (savings, checks, time deposits, etc.). ) and securities accounts.

2. Will the declared assets be taxed?

Even if the assets themselves are declared, they will not be taxed. Only when the assets generate personal income will this income be consolidated into the personal name for taxation, and if there is a loss, it can also be appropriately offset. It is very important that income and asset income before obtaining a green card are not taxable in the United States. Customers are advised to consult the tax agent in detail for tax planning before obtaining the green card.

How do new immigrants file tax returns?

Q: How do new immigrants file tax returns on their domestic properties?

A: If it is a self-occupied property, there is no need to declare it. If it is rented or sold, it needs to be declared as a source of income, and the individual income tax paid in China does not need to be paid to the US federal government repeatedly. If the taxpayer has lived in the house for sale for two years in the past five years, the value-added after sale is less than $250,000 (single) or $500,000 (husband and wife) excluding tax.

Q: Do new immigrants need to declare company shares?

Answer: If it exceeds 65,438+00% or changes more than 65,438+00%, it is required to report the balance sheet, income statement and share market value of the current year. Those who hold more than 50% of the company's shares need to declare the company's annual balance sheet, income statement, stock market value and company account information, but the company's income is not personal income. Only after the company pays dividends, shareholders need to declare this part of income, which may be taxed.

Q: Once the US green card is obtained, the US will tax the global assets (including China) of the green card holders.

A: First of all, this understanding is completely wrong. We should understand the difference between assets and income. Assets are the wealth you have acquired from the past to the present, and the income is your investment income or salary, bonus and commission income in that year. American global tax policy is aimed at personal income, not personal assets. For example, suppose you have 20 million yuan of real estate for rent in China, and you get 2 million yuan of rent every year. Once you get a green card in the United States, the IRS will not ask you to pay 20 million RMB property tax, but will only tax your net income of 2 million RMB rent.

Q: Once you get the US green card, all domestic income will be subject to US tax.

A: There are several ways to deal with overseas income in the United States. If you are an overseas American tax resident, each person has an allowance of nearly $90,000, excluding financial investment income. For example, both husband and wife get green cards or citizens, and each person gets a salary of $654.38 million from China every year. If they file tax returns separately, after deducting the tax allowance of 90,000 yuan, each person only needs to file tax returns on the income of 6,543,800 yuan per year. And this 10,000 yuan has no tax at all except various deductions.

If you are an American resident and declare your overseas income, then there is a tax treaty between the United States and China. If you pay taxes in China, you can enjoy tax relief. You won't have to pay taxes twice.

Q: Once a green card is obtained in the United States, the green card holder's China company also needs to pay US tax.

A: The global taxation in the United States is aimed at individual green card holders. If the green card holder owns shares in a joint-stock company in China, and the profits generated by China company are not distributed to the green card holder through dividends, then the green card holder does not need to pay US tax on the profits of the China company he owns. For example, if the annual income of the China company owned by the green card holder is RMB 6.5438+million, but the green card holder, as a shareholder, does not receive dividends from the company, then there is no need to pay US tax on the profits of the China company of RMB 6.5438+million. If green card holders are self-employed, the profits generated by China companies have been taxed in China and can be deducted in the United States.

Q: The IRS has very strict tax inspection. Once found, it will lead to jail.

A: The IRS's tax investigation is also determined according to different situations and the severity of the plot. Generally speaking, your tax is reasonable, and the probability of finding it is relatively low. America is a relatively humane country. If the IRS finds that you deliberately deceive the government, it will first punish you in the form of a fine, and those with serious circumstances may face court. Under normal circumstances, as long as a reasonable explanation is given, the query of the tax bureau is easy to solve.

Do I need to declare my property in China after eight people immigrate and land? If not, when should I declare?

A: You don't need to declare your property in China when you land. There is no need to declare any assets when landing. The United States only requires individuals to declare their income in each fiscal year, and tax declaration does not mean paying taxes. Declare some financial assets, not real estate. Real estate can only be taxed if it is beneficial to individuals. There are two possible situations: first, the house is used for rent to generate rent, and tax returns are needed at this time. Second, buying and selling houses generates value-added benefits, and tax returns are also needed at this time. In other cases, you don't need to declare this attribute.

From the tax point of view, did you buy real estate in the United States before getting a green card? Or do you want to buy it after you get a green card? Why?

A: From the tax point of view, if you buy a house before you get a green card, then the owner of the house becomes a taxpayer in the United States, regardless of whether you finally get a green card or not. In fact, it is not necessarily cost-effective in taxation, and the comprehensive consideration of rental income is different. So now is the opportunity to buy a house first and then get a green card. Houses in the United States have come out of the trough and started to rise, and the economy has also improved significantly. The United States is a market economy, and the domestic housing market is relatively stable. We can see the future of steady growth. So buying a house before getting a green card is very different from buying a house after getting a green card.

How to declare the assets and income of the stock? Is there any way to reduce taxes?

A: If you invest in the stock market, you need to submit detailed records of stock transactions in the United States and overseas when you declare your income and assets. The year-end report issued by the securities company to your accountant does not need to be provided to the IRS. These documents are recommended to be kept for 3 years, and can be verified if the IRS comes to check them.

Is there any way to reduce the tax that customers who invest in the stock market may have to pay?

A: Accountants generally advise clients to sell profitable stocks before landing. Because this income occurred before landing, there is no need to pay taxes to the United States. For stocks that you want to keep, you can sell them before landing and buy them after landing. As a result of this operation, the stock is sold after the cost increases, and the income generated is the selling price MINUS the cost price bought after landing; For the loss part, it can also be tax deductible.

How does the IRS audit its accounts?

A: The IRS generally uses the following three ways to audit accounts:

1. Random selection and computer screening: sometimes the IRS will choose to declare according to the computer statistical program.

2. File comparison: when the information obtained from the source is inconsistent, such as the payroll information sent by the company does not match the payroll information sent by the individual, then such tax forms will be selected for review.

3. Related party derivative investigation: If the taxpayer has income or the transaction object is spot-checked. For example: business partners, individual companies, etc. Is investigated, then taxpayers may also be randomly selected together.

Being audited does not necessarily mean that there must be something wrong with your tax bill.

What should I do if I receive a notice from the IRS?

A: After receiving the notice from the IRS, don't panic and contact the accountant. First of all, we must find out the reason for receiving the notice and whether what the IRS said is consistent with the actual situation. If the IRS makes a mistake, we can explain it to him with evidence and solve it. If the IRS is not mistaken, look at the proposed adjustment amount, the deadline for reply, and the tax year. If it is only the difference of 12000 USD, taxpayers need not be too nervous. Just study the reason again and explain it clearly to the IRS.

Is there any regularity in the audit of the IRS?

A: In different income groups in the United States, the probability of inspection is different. The IRS conducts more surveys on high-income groups. 20 10 The proportion of taxpayers whose income exceeds 10 million dollars is as high as 18.4%. The investigation rate of income between 75000- 100000 dollars is the lowest, only 0.64%.