Federal Income

Federal income tax is a type of tax that is levied by the federal government on the income of individuals and businesses. The federal income tax is progressive, meaning that the tax rate increases as the amount of income increases. The federal income tax is used to fund the government's operations, including Social Security, Medicare, and other programs.

The federal income tax is based on the concept of adjusted gross income (AGI). AGI is calculated by taking your gross income and subtracting certain deductions, such as the standard deduction or itemized deductions. The federal income tax is then calculated on your AGI.

The federal income tax is one of the most important taxes that you will pay. It is important to understand how the federal income tax works so that you can file your taxes correctly and avoid paying more than you owe.

Here are some additional details about the federal income tax:

• The federal income tax is levied on individuals and businesses.
• The federal income tax is progressive, meaning that the tax rate increases as the amount of income increases.
• The federal income tax is used to fund the government's operations, including Social Security, Medicare, and other programs.
• AGI is calculated by taking your gross income and subtracting certain deductions, such as the standard deduction or itemized deductions.
• The federal income tax is calculated on your AGI.
• It is important to understand how the federal income tax works so that you can file your taxes correctly and avoid paying more than you owe.