“How to reduce tax for every month “======You only have control of your W4 not your W2. Your paycheck is taxed at your W4 amount; in theory you can underwithhold on your other checks if you can get a feel for total withholding. As you may not know exactly how much you pay in taxes each month /year, it’s smart to reduce them in every way possible. So to reduce your tax liability, (In reality, many people have too much federal tax withheld from their paychecks. You’re in that boat if you receive a large tax refund each year. receiving a tax refund never helps your finances. So receiving a tax refund is simply an indication that you handed over way too much money to the government. Instead, you should have received that money and put it to work earning a nice return in a retirement or savings account. Receiving a higher paycheck now, rather than getting a tax refund in the future, doesn’t actually lower your tax bill, but it does give you an instant pay raise so you can control more of your hard-earned money.) You NEED to adjust your withholding by completing Form W-4 and submitting it to your ER any time during the year. The W-4 can be confusing, so get some help with it by using the Withholding Calculator at irs.gov.
2013 Withholding Calculator
You can contribute to Tax-Deferred Retirement Accounts like traditional IRAs, workplace 401(k)s, and Keoghs (which are for the self-employed) are great ways to lower your tax bill. That’s because you don’t pay tax on the money you contribute to them until you withdraw it in the future. That doesn’t eliminate the tax, but you defer it for many years.You also can t ake Tax Credits to lower your taxes because they reduce your actual tax bill dollar for dollar.
“and what are the benefit to pay tax?.”============I guess there are many services offered to citizens that could not be managed effectively under any other system.The federal government uses your tax dollars to support Social Security, health care, national defense and social services such as food stamps and housing. Services provided by taxes in your home state are public schools, safe highways, health care, prisons and social services for low-income citizens. The city or county where you live provides water and garbage service, police and fire protection and also contributes to public school or etc etc…………
“And How many percentage to pay tax?”======= The point here is that it's really difficult, if not impossible, to say that Americans pay 'X' percent in total taxes. Any average percentage would be essentially meaningless. Even trying to tie it to income is almost impossible since various sources of income attract different tax rates. As we all know, we are taxed before we even see our money. Federal , Social Security, Medicare, State, Local and then once we get what's left - we are taxed again (sales tax, gasoline tax, tax on automobiles, property tax) ; that varies all over the place. Income taxes are based upon taxable income. Not all income is taxed, at the very least you get the standard deduction and personal exemption in most cases so for 2012 the first $9,750 isn't taxed at all except for SS and Medicare. State taxes follow a similar pattern; not all dollars earned are taxed. At the lower end of the income scale little if any income tax is paid and many actually get money at tax time as opposed to pay out.On the other end, sales taxes vary widely from one jurisdiction to the next as does what is taxable. The more you spend the more you'll pay but at the lower end of the income scale you'll pay a much larger portion of your total income in sales taxes than someone with a high income since high-income folks tend to accumulate wealth as opposed to spend all of their income.Other items are loosely related to total wealth as well. Property taxes are based upon value and the wealthy tend to buy more expenseive properties than the poor. Even the poor who don't pay property taxes directly certainly do pay them indirectly through the rent that they pay to their landlord unless they live in public housing. In that case, who to you assess the property taxes against in order to work out an "average" tax levy.
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