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Federal and State Tax Return Filing For Individuals

The worst nightmare of any citizen is a guy from Internal Revenue Services (IRS) knocking on your door. Thus, instead of you investing your precious billable time on getting your head around your taxes or delegating it to someone inexperienced who might come up with a solution which might be prone to various errors, it is better that you give your headache to certified, experienced and industry-wide trusted professionals and never worry about the boogeyman again, ever again!

Things to Consider

Both, income tax and business tax are subject to hundreds of regulations and variables. To list a few:


    • Tax Cuts and Jobs Act and Tax Accounting Rules. 
    • What expenses to deduct? 
    • What is the limit of deduction of that particular expense? 
    • How much state tax can be deducted from federal tax? 
    • What if you are not a citizen? 
    • Whether to claim the standard deduction or itemize the deduction?
    • Will your pension, Social Security or treasury securities be taxed? 
    • Ascertaining the tax bracket on the basis of your total income from profession/occupation, estate, investments, capital gains, etc?
    • Did I mention that even your marital status will affect your tax bill? 


And these are the least intricate one and not even a quarter of all the variables involved. On top of all this, you also need to be smart in filing your taxes with legitimate tactics and manoeuvre expenditure accordingly so that you can save every penny, which is rightfully yours.

Federal Tax Rates

The marginal tax rate for Federal tax varies from 10% to 37% of taxable income.  After 2018 amendments in Tax Cuts and Job Act, we now have seven marginal tax brackets on the federal level, i.e. 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

State Tax Rates

State and local tax rates vary widely by jurisdiction from 0% to 13.30% of income, and many are graduated. In the US, the state tax is either proportional or progressive. Following are the nine states that have proportional tax system:


    • Colorado (4.63%);
    • Illinois (4.95%); 
    • Indiana (3.23%); 
    • Kentucky (5%); 
    • Massachusetts (5.05%); 
    • Michigan (4.25%);
    • North Carolina (5.25%); 
    • Pennsylvania (3.07%); 
    • Utah (4.95%).


Rest, all the states have a progressive tax system, that is, the tax increase along with the income. Some states like Hawaii have 12 tax brackets while Kansas and Rhode Island have only 3 tax brackets, thus, as we mentioned at the very outset, state tax heavily varies from state to state.

USAIndiaCFO Advantage

We are a firm with a dedicated team for US taxation issues consisting of licensed Certified Public Accountants (CPAs) and IRS Efile Service Provider to handle all sorts of issues, from tax planning and documentation to filing returns. We have 10+ years of experience in handling complex tax situations and we have an international clientele comprising 3500+ High Net Worth Individuals (HNWIs), startups and incumbent businesses. 


We comprehensively analyse your earning sources and bifurcate your income and expenses in the appropriate categories and give you specific figures for every variable. Our clients never complain regarding the communication of timelines along with the devised action plan and we coordinate with clients on every step and keep them apprised with every discovery or development if any.


To know more about how we will implement our optimum and innovative solutions to make your life easier and smooth, give us a call on 7727887799 (also available on WhatsApp) or drop us an email containing your business requirements at and our team will reach out to you within 2 hours.

We help you file your federal and state taxes, along with providing a range of other services to take full accountability as your virtual CFO.


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Let us discuss your requirements on a no-obligation discovery call, anytime as per your convenience.