The United States has a progressive income tax, meaning the tax rate increases with the amount of income. Income tax is collected by the federal - and sometimes state and local governments - to pay the expenses of running the government.
In the US, taxable income is defined as all income from all sources (gross income) minus any legal deductions and/or exclusions.
To calculate adjusted gross income you can either itemize your deductions or take the standard deductions given by the IRS, whichever is more beneficial to you.
The tax rate varies according to tax brackets. Tax brackets start at 10% of adjusted gross income and go up for increasing intervals of income based on filing status.
When it comes to figuring taxes, many have no problems filing their own tax returns. However, especially when it comes to earned tax credits or itemized deductions, tax returns can get complicated quickly. Considering the consequences to not paying taxes, consulting a tax attorney is important.
Beyond ever-growing interest and penalties, it is actually against the law to not pay your income taxes. Failure to pay your income taxes results in criminal charges, leading to criminal punishment of fines and/or prison time.
If you have income tax questions or issues surrounding paying income taxes, speak with a qualified Tax Lawyer near you today. Federal tax law is constantly changing, and with state and local law also involved, you need an experienced, local tax lawyer on your side.
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