Finding Your Way: Finances
Taxes
Sales Tax
Many states have a sales tax, which is a percentage paid on every dollar spent to buy goods. In Massachusetts the sales tax rate is 6.25%. This tax is paid on everything but food and clothing. Food bought in a restaurant or fast-food facility is subject to the 6.25% tax.
Income Tax
State Department of Revenue
Federal Internal Revenue Service
People who work in the United States pay income tax to the state and federal governments. These taxes must be paid each year by April 15 for the previous year. Most employers deduct a percentage of your paycheck and send it to the state and federal governments to pay your estimated taxes. Your employer will send you a statement of your total earnings and deductions for the previous year by January 31 of the new year. You need to complete an income tax form even if you do not owe any additional money. Income Tax forms and instructions can be found in libraries, local government offices, and online. Each individual is responsible for sending in his or her own taxes. Many individuals and agencies will assist people with their income tax preparation for a fee. These fees differ greatly. Check with your public library to find out if there are any free tax preparation services in your community.
Social Security and Medicare Benefits
Social Security Administration
Framingham Office
One Clarks Hill, Suite #101, Framingham, MA 01702
Telephone: 1-800-772-1213
Social Security numbers are used to report a person's wages to the government and to determine that person's eligibility for Social Security benefits. You need a Social Security number to work, collect Social Security benefits, and receive other government services.
This number can also be used for bank account identification purposes and for filling income tax returns. You must go to the Social Security Office to obtain an application for a Social Security card. Proof of date of birth and visa status are required. You will need to show your passport. Social Security numbers are only issued for employment purposes; therefore you must have a permanent resident visa or documentation from the Immigration and Naturalization Service (INS) showing that you have a work visa.
Social Security also provides benefits and programs to those who are eligible. Benefits and programs include retirement, medicare, disability, survivors benefits, and Supplemental Security Income (SSI). For more information about whether you qualify for benefits and how to access them, visit your local Social Security office or check the Social Security Website.
Banking Your Money
Keeping money in a bank ensures that your finances are safe, allows you to have easy access to your funds and payment histories, and gives your savings an opportunity to earn interest. All banking institutions are insured by the federal government so that you will not lose your deposits if the bank is robbed or goes out of business. Banking institutions also help protect you against fraud. All records in the bank are (under normal circumstances) confidential.
In Massachusetts, there are two kinds of institutions in which you may deposit your money: banks and credit unions. They provide a variety of services, such as Savings and Checking accounts. A savings account is an account used to deposit money and accrue interest on the money you have saved over time. A checking account is also used to deposit money, and it allows account holders to use a debit card, check, or an online transfer to pay for things with the money in the account.
Consumer Rights
Massachusetts Attorney General's Office
You should file a consumer complaint with the Massachusetts Attorney General's Office if you are having a problem with a business and need help to resolve that problem. According to the AG's office, common consumer issues include defective products; car sales and financing; auto repossession issues; debt collection; mortgage servicing and loan modification; home improvement contracts; business closures; utility bill disputes; shut off unregulated utilities; and issues specific to immigrants, veterans, homeless, and elderly residents. You can also file a complaint to report anti-competitive mergers, price-fixing agreements, and other illegal practices.
To file a consumer complaint, contact the Attorney General's Consumer Complaint Hotline at 617-727-8400, or file a complaint online.
The Attorney General's office can also assist with filing a workplace complaint, a civil rights complaint, and landlord and tenant rights issues.
Better Business Bureau (BBB)
Local BBB Office
5 Mt. Royal Ave. Suite 100, Marlborough, MA 01752-1927
Telephone: 508-652-4800
The Better Business Bureau helps consumers find trusted businesses, brands, and charities, and identify potential scams. As a consumer, you can file a BBB complaint for assistance with handling disputes that relate to marketplace issues experienced with the services or products a business provides. You can also report scams and leave business reviews.
April 2024