What is the difference between federal and state income tax?
The difference between federal and state income tax is that federal income tax is applied to all U.S. citizens nationwide, while state income tax is specific to the state of Washington. Federal income tax is collected by the Internal Revenue Service (IRS), while Washington state income tax is collected by the Washington State Department of Revenue. Federal income tax is the same throughout the US, meaning that all citizens pay the same rate of tax on their income, regardless of the state they live in. The federal income tax rates are based on the income level and filing status of the taxpayer. In Washington, the income tax rate can range from 0% up to 9.2%, depending on the amount of taxable income earned. In addition, the federal government allows individuals to deduct certain expenses from their taxable income, such as mortgage interest and certain charitable donations, to reduce the amount of tax they owe. The state of Washington does not allow for these deductions, which can make the state income tax rate higher than the federal rate for some taxpayers. In summary, the difference between federal and state income tax is that the federal income tax is applied to all taxpayers in the US, while the state income tax rate may vary depending on where the taxpayer resides. Washington state income tax does not provide the same deductions as federal income tax and may be higher than the federal rate for some taxpayers.
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