define federal income tax

Income tax A state or federal government's levy on individuals as personal income tax and on the earnings of corporations as corporate income tax. A system administered by the IRS which collects money based on earned income.

In addition, your income tax rate depends on your tax-filing status.

Federal income tax is collected through a withholding process where the employer deducts tax from the employee payroll. Federal Income Tax Definition. Extended Definition Federal income tax is a tax on income and is imposed by the U.S. federal government. Businesses (employers) must … Federal tax liabilities are paid to the Internal Revenue Service in the United States.

If the federal income tax liability you projected is greater than your withholding and payments, you may have a payment due when you file your tax return. federal income tax liability: The amount owed to the federal government related to an individual's or a company's source in income. Income Tax A tax on a person's individual income from wages and salary, gambling winnings, and some other sources. The individual income tax (or personal income tax) is a tax levied on the wages, salaries, dividends, interest, and other income a person earns throughout the year. n a personal tax, usually progressive, levied on annual income subject to certain deductions n. federal income tax definition: a tax on workers' salaries or companies' profits that is paid to the US government: .

n. A tax levied on net personal or business income. How to use income tax in a sentence. This would place you into the 22% tax bracket, though this does not mean you are taxed at 22% for your entire income. Different tax rates are levied on income in different ranges (or brackets) depending on the taxpayer’s filing status. The intended purpose of this website, WhatisTaxed.com, is to data mine with a computer the Internal Revenue Code, and the Code of Federal Regulations, Title 26, for the "codes" (e.g.

Income Tax: An income tax is a tax that governments impose on financial income generated by all entities within their jurisdiction. Meaning of Federal Income Tax Withheld facts. A charge imposed by government on the annual gains of a person, corporation, or other taxable unit derived through work, business pursuits, investments, property dealings, and other sources determined in accordance with the Internal Revenue Code or state law.. Taxes have been called the building block of civilization.

The IRS collects the tax. Income tax A state or federal government's levy on individuals as personal income tax and on the earnings of corporations as corporate income tax.