Federal Income Tax
Income taxes in the United States have their beginnings in the times of the Civil War, but it wasn't until the early part of the twentieth century that Federal income taxes began to resemble what they are in present day. While tax rates have risen and fell throughout the history of the Internal Revenue Service, Federal income taxes are often the basis for punch lines as far as the few things in life that are guaranteed to always be there.
An Annual Obligation
Federal taxes are assessed on an annual basis, although many people wind up paying their tax obligations in installments throughout the year. These are not the only taxes that wage earners must pay, and depending on the state and county they reside in, there may be tax obligations from local government entities. The taxes that seem to confuse people the most, however, are the Federal income taxes accompanied by a myriad of rules and regulations.
Finding the Right Information
Not understanding Federal income tax codes and rules is not a sufficient excuse for failing to file returns in a timely manner. The Internal Revenue Service provides a variety of helpful resources to assist taxpayers in figuring out how much money they owe in taxes or how much money they can expect to receive back in the form of an income tax refund. Tax professionals and other tax-savvy writers can help translate the instructions provided by the IRS to help taxpayers get the answers to important questions:
- Why do people have to pay Federal income taxes in the first place?
- When are taxes due?
- How much money should self-employed people set aside for Federal taxes?
- What does the government do with tax revenue?
- How can people reduce their Federal income tax obligation?
Getting the answers to these (and other) questions can help make income taxes much easier to understand, and may even help some taxpayers save some money in the amount of taxes they owe. Let this LoveToKnow category help!