Are you wondering if you are required to pay income tax or file a tax return this year?
The IRS is the federal agency responsible for collecting federal taxes. The IRS is responsible for residential taxes, they also oversee business taxes, property taxes, estate taxes, and trust taxes.
It doesn’t matter whether you made the money, were given money, or won money such as the lottery, casino or from a game, you must pay federal income taxes on it.
If you are employed your employer will take the taxes out of your paycheck, at the end of the fiscal year you will receive documentation of the total amount taken from your paycheck throughout the year.
You may have overpaid the amount you are responsible for, if so once your taxes are complete you should receive a refund from the government. If not, you will owe the government money.
The amount you are responsible for may vary. There are several factors that are taken into consideration to determine the percentage amount you are taxed on your income.
Those factors are:
There are online calculators that will help you determine the percentage you will be taxed otherwise know as a tax bracket. The percentage can range from 10% to 35% depending on your tax liability.
Visit TurboTax Online today to for more information and to utilize their calculators to help determine your tax liability. TurboTax also will help you file your tax return step by step, guiding you through the entire process. Learn More about Federal Income Taxation.
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