Income Tax

The term income tax is one of the most basic of all tax principles. It is the tax that is levied on the net personal or the net business income. The Internal Revenue Service for the federal government collects this type of tax, though states and local communities may also charge an income tax. This tax is used to fund the governmental organizations and programs. Income tax is not an option. The amount of tax paid is also based on the amount of income the individual has, and where that income amount fits into a specific tax bracket. This income amount may change from time to time. Income tax is collected throughout the year through payroll deductions, but needs to be reconciled yearly.

Fast Facts

  • The power to impose a tax on American citizens was given to Congress in 1787 with the signing of the United States Constitution.
  • When the Articles of Confederation were in place, the government's sole source of income was from the voluntary donations that states made.

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Results 1-5 of 491 for "income tax"

  • Unpaid Income Taxes

    Inevitably, there are thousands of taxpayers each year that do not file their personal or business income tax ...
    • Site: taxationlawfirms.com
  • Income Tax Fraud

    Tax Fraud occurs in situations where businesses or individuals knowingly and intentionally fail to file their ...
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    • 2 of 2 user(s) found this useful
  • Determining Estate Taxes

    The process of determining estate taxes can be very involved and often includes many different factors.  To de...
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  • Income Tax Attorney

    Income tax is the tax required to be paid on any kind of personal or business income. Anyone with an income ov...
    • Site: taxationlawfirms.com
  • Personal Income Tax Help

    Staff Writer, Feb 03, 2006It is important to be organized. It can save grief when filing income tax....
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