Page 1 of 1

state income tax/ federal income tax?

PostPosted: Thu Oct 28, 2010 10:28 am
by Imani_A
I think everyone was misunderstanding what I was asking about state income tax.

For example, FICA is a deduction/tax made for medicare and social security. But what is the state income tax's deduction made from? Meaning, what is it deducting for?

FICA is deducting money for medicare and social security. But, what is state income taxing for? Is it a deduction made for just living in that state? Explain, because I don't understand.

Also, I read that the federal income tax's amount is based on your status (i.e. fininancially, marital, etc.). But, what are they taking money out for, what does that money go towards? They take the money out, just to put it towards the government?

Please try to make it short, and simple, and no big terms because I'm new at this.
@Smiling, so it basically goes towards the state? That's state income tax? Then, what's federal income tax?

Also, Geez....does any of it go to ourselves?

&nd I don't understand the "income" part of the state taxes? Do they mean the money you earn from that state?

Thanksss SOOO MUCH.