Why is my Oregon income tax higher than Federal?
145342
similar situation for me this year (new resident of OR)... Federal taxes included a $2000.00 child care credit, OR does not have that, so bingo... higher OR taxes.
321840
more than you want to think about.\njust call the IRS, they'll be glad to inform you. Of course, the IRS advice is wrong 1/3 of the time.
1057742
For federal, If the house was your primary  residence for 2 of the last 5 years, then you are able to walk away tax free with $250K (single) and $500K (married). For state, I believe OR will take and credit you back. OR taxes your gain or distribution (or allows your loss) received during the year. Limit net losses to $3,000 ($1,500 if married filing separately). The capital loss carryforward allowed on your full-year Oregon return will be the same carryforward allowed on your federal return. If your federal return includes a gain already taxed by OR, then you can subtract it on your state return.
326947
No it's not fair but it is the way our taxes are stuctured..however most people think that the middle and low income levels pay the most taxes..HA!!
319582
It's not just about how much money you make, it's what you do with your money that counts.\n\nP.S.  The income tax range from 0 - 50% depending on how much money you are earning - the more you earn/year the higher percentage you pay in taxes\n\nDavid, what the heck are you talking about?  The government pays for Canadians living expenses???  Where do you live???
399983
That it the way I read it from the link that I sent you when you asked earlier.  Looks like it is a financial penalty that keeps growing until you do pay it.
268238
I think your asking how can you have paid out more than your share of taxes.  If so then it means that either your employer has put you in the wrong tax bracket or your being taxed at a higher rate than what you should be for your income.  There is nothing wrong with doing this as you will get the difference back, just a question of money now or money later.
55006
Basically your standard deduction is doubled and your tax will be at a lower rate. If there are kids, you have more deductions depending on your income and their ages.
707289
Others have already stated that 35% is the highest Federal income tax rate.  I included a link the the IRS tax rate schedules.
387573
I live in Long Island which is one of most heavily taxed parts of the country.  I don't believe we are overtaxed.  Our state is one of the richest in the Union and we have to help out poorer states.   If Alabama was the richest state and we were the poorest Alabama would be taxed more and we would receive more federal aid.  I believe that our tax dollars are not going to the right places a lot of times though.
833116
It is a state tax.  It differs from state to state.  There are no slabs but fixed amount depending on your professional income.
133182
That sounds like a state refund you got last year.\nIn California, if you got a state refund in 2004 you must report it as income in your federal income tax for 2005.\nThere are exemptions like if you itemized last year and you don't this year.\nConsult your tax professional.
791733
Virtually all types of taxes rise.\n\nIncome taxes increase as taxable income increases\nProperty taxes increase as property value increases\nSales taxes increase as purchases increase.\n\nIn addition to increases in total tax, tax RATES increase and decrease as well.\n\nNow, there are several hundred thousand pages of Federal and State tax rules and regulations.  It would be impossible to even begin to review them here.\n\nSuffice it to say that ALL taxes rise or fall depending on the specific tax and the circumstance.
1165796
More progressive taxes means that tax rates would be higher at higher income than they are now.  \n\nIn theory, whatever you tax you discourage.  Thus, a more progressive tax would reduce the economic incentive for individuals and businesses to earn more taxable income.  As a result, national personal income should grow more slowly and so would GDP.  \n\nIn practice, it gets more complex.  During the Clinton years in the nineties, Clinton made the U.S. income tax a lot more progressive by raising the upper brackets significantly.  But, the U.S. economy actually did really well.  This was due in part to Greenspan's monetary policy being reasonably accomodating.  Also, labor productivity rose rapidly.  All those factors contributed to increasing GDP. \n\nIf you compare the U.S. vs Europe, the U.S. has a much less progressive tax structure.  And, the U.S. economy has steadily grown much faster than Europe's.  So, on an international standard you can easily argue that a less progressive tax structure contributes to a faster economic growth and vice versa.  \n\nDomestically, as mentioned the case is complex with the Clinton years showing strong performance despite an increase in the progressivity of the tax structure. \n\nIn economics there are so many different levers than can counteract each other that it is often difficult to forecast with much precision what will be the impact of a given fiscal policy (change in tax structure.  That's why economics is called the dismal science.  Does not mean it is not fascinating stuff.  It clearly is.
750473
Excellent question!\n\nImagine a time long ago where once per year the tax man would stop by and ask how much you made the previous year and then say "give me 25%".  Oftentimes, you spend all you made and didn't have the 25% sitting around.  The tax collector would often under collect the taxes by a large amount.  So, the government got smart and said, "Why don't we collect taxes with every paycheck instead of waiting until the end of the year?"\n\nNow, if you have a flat tax, this is easy.  If your tax rate was 25% and there were no credits, deductions, or adjustments, the IRS would simply take 25% of your gross pay.  In fact, they do this currently with social security (6.2%) and Medicare (1.45%). \n\nBut, we don't have a flat tax.  Our tax structure is quite complicated.  We enter all our income minus all our adjustments, deductions, exemptions (dependents) to get to our final taxable income which is taxed at a tiered rate from 10% to 35%.  How much should your employer withhold and give to the IRS on your behalf every paycheck?  5%?  10%?  30%?  Let's say you and a coworker both earn $50,000 per year, but he has a wife and 3 kids.  Maybe his federal tax is only 5% of his earnings whereas you, single and no kids, has a federal tax of 15%.  If your employer withholds 10% from each, your coworker will get a large refund and you will end up owing.  He may want more in each paycheck and a smaller refund.  You may want less in each paycheck and not owe anything at the end of the year.\n\nWithholding allowances give you, the taxpayer, that control.  They allow you to throttle the amount your employer withholds from each paycheck and gives to the IRS.  There are limitations.  If you choose an allowance that is too large, you may end up owing more than the IRS feels you should and they will charge you with penalties.  On the other hand, if you choose a real small allowance, you will end up getting a much larger refund, but each paycheck may be not have enough post-tax money.\n\nBy the way, congratulations for calling them "withholding allowances" and not "dependents" or "exemptions".  Most people don't know the difference.
228635
There are tax law changes every year. If I were you I would look at last years taxes and this years taxes and see what is so different. Last year you might have been at the very end of one tax bracket and this year your income might have pushed you into a different bracket. If you had them done by someone most places will give you a comparison. If they did it will show you where it changed form last year you this year. If you cant find it there then I would start looking for errors. If you find some correct it with a 1040X. Good luck
570012
It depends on your filing status and your deductions. Federal taxes are income taxes. As opposed to state income taxes and FICA and Medicare which are entitlement taxes for Social Security and Medicare.