Going to or leaving the United States of America
Local information | Details |
---|---|
Tax authority |
The Internal Revenue Service (IRS) |
Website |
|
Tax year |
1 January to 31 December |
Tax return due date |
15 April (for US residents residing overseas on 15 April there is a 2 month automatic extension to 15 June) |
Are tax return extensions possible? |
Yes. However, an extension to file a return is not an extension to pay tax. To prevent interest and penalties from being charged on unpaid tax, any tax due should be paid by 15 April. |
Is joint filing possible? |
Yes, depending on personal circumstances, married taxpayers may file jointly or elect to file as 'married filing separate'. |
Local information |
Tax authority |
---|---|
Details |
The Internal Revenue Service (IRS) |
Local information |
Website |
Details | |
Local information |
Tax year |
Details |
1 January to 31 December |
Local information |
Tax return due date |
Details |
15 April (for US residents residing overseas on 15 April there is a 2 month automatic extension to 15 June) |
Local information |
Are tax return extensions possible? |
Details |
Yes. However, an extension to file a return is not an extension to pay tax. To prevent interest and penalties from being charged on unpaid tax, any tax due should be paid by 15 April. |
Local information |
Is joint filing possible? |
Details |
Yes, depending on personal circumstances, married taxpayers may file jointly or elect to file as 'married filing separate'. |
2020 income tax rates
Married filing jointly. Taxable income band USD | National income tax rates |
---|---|
0 to 19,750 |
10% |
19,751 to 80,250 |
12% |
80,251 to 171,050 |
22% |
171,051 to 326,600 |
24% |
326,601 to 414,700 |
32% |
414,701 to 622,050 |
35% |
622,051 + |
37% |
Married filing jointly. Taxable income band USD |
0 to 19,750 |
---|---|
National income tax rates |
10% |
Married filing jointly. Taxable income band USD |
19,751 to 80,250 |
National income tax rates |
12% |
Married filing jointly. Taxable income band USD |
80,251 to 171,050 |
National income tax rates |
22% |
Married filing jointly. Taxable income band USD |
171,051 to 326,600 |
National income tax rates |
24% |
Married filing jointly. Taxable income band USD |
326,601 to 414,700 |
National income tax rates |
32% |
Married filing jointly. Taxable income band USD |
414,701 to 622,050 |
National income tax rates |
35% |
Married filing jointly. Taxable income band USD |
622,051 + |
National income tax rates |
37% |
Single person. Taxable income band USD | National income tax rates |
---|---|
0 to 9,875 |
10% |
9,876 to 40,125 |
12% |
40,126 to 85,525 |
22% |
85,526 to 163,300 |
24% |
163,301 to 207,350 |
32% |
207,351 to 518,400 |
35% |
518,401 + |
37% |
Single person. Taxable income band USD |
0 to 9,875 |
---|---|
National income tax rates |
10% |
Single person. Taxable income band USD |
9,876 to 40,125 |
National income tax rates |
12% |
Single person. Taxable income band USD |
40,126 to 85,525 |
National income tax rates |
22% |
Single person. Taxable income band USD |
85,526 to 163,300 |
National income tax rates |
24% |
Single person. Taxable income band USD |
163,301 to 207,350 |
National income tax rates |
32% |
Single person. Taxable income band USD |
207,351 to 518,400 |
National income tax rates |
35% |
Single person. Taxable income band USD |
518,401 + |
National income tax rates |
37% |
Unmarried non-resident aliens are taxed under the rates for single individuals. Married non-residents whose spouses are also non-residents are generally taxed under the rates for married persons filing separately.
The United States also imposes alternative minimum tax (AMT) at a rate of 26% on alternative minimum taxable income, up to USD197,900, for all filers except USD98,950 for married filing separately and at a rate of 28% on alternative minimum taxable income exceeding USD197,900 for all filers except USD98,950 for married filing separately (long-term capital gains and qualified dividends are generally taxed at lower rates of 15% or 20%.
Some states, cities and municipalities also levy income tax. City or municipal income tax rates are generally 1% or lower. However, the top 2020 rate for residents of New York City is 3.876%. State income tax rates generally range from 0% to 12%. Therefore, an individual’s total income tax liability depends on the state and the municipality where the individual resides or works.
Expat tax guides
Read tax guides for expats provided by EY.
Additional information
How can I open an offshore bank account?
The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.
Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.
HSBC accepts no responsibility for the accuracy of this information.
This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.
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