{"id":353938,"date":"2016-06-13T12:22:00","date_gmt":"2016-06-13T17:22:00","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/tax\/federal-taxes.html"},"modified":"2016-06-13T12:22:00","modified_gmt":"2016-06-13T17:22:00","slug":"federal-taxes","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/tax\/federal-taxes.html","title":{"rendered":"Federal Tax Laws"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <div\n    data-testid=\"fl-general-title\"\n    class=\"fl-general-title fl-flex fl-gap20 fl-items-end\"\n>\n    <div class=\"fl-general-title-heading fl-flex fl-flex-column\">\n        <h1\n            class=\"fl-h1 fl-general-title-title fl-no-spacing\"\n            data-testid=\"fl-general-title-title\"\n        >\n            Federal Tax Laws\n        <\/h1>\n        <p\n            class=\"fl-general-title-description fl-text-xl fl-no-margin\"\n            data-testid=\"fl-general-title-description\"\n        >\n            This article discusses the different types of federal taxes the government collects and who pays them.\n        <\/p>\n    <\/div>\n<\/div>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw Staff<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw Staff<\/a>\n                | Last updated\n        <time>\n                            June 13, 2016\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Most Americans know about the federal income tax because they must file an annual individual income tax return with the Internal Revenue Service (IRS) each year. But the federal government funds its expenditures by levying taxes on far more than people&#8217;s income. For example, corporations and trusts must also pay income tax. The federal government imposes taxes beyond the income tax, such as capital gains and Social Security taxes.<\/p>\r\n\n<div\n    class=\"fl-category-overview\"\n    data-testid=\"fl-category-overview\"\n>\n    <div\n        class=\"fl-accordion fl-category-overview-container\"\n        id=\"category-overview\"\n        data-testid=\"fl-accordion\"\n    >\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-1-category-overview\"\n               aria-labelledby=\"button-1-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-1-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-1-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Income Tax Basics\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-1-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/tax-basics-a-beginners-guide-to-taxes.html\" class=\"fl-list-item-link\">\n                                    <span>Tax Basics: A Beginner&#039;s Guide to U.S. Federal Taxes<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/the-irs-and-your-rights.html\" class=\"fl-list-item-link\">\n                                    <span>The IRS and Your Rights<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/is-a-tax-id-required-for-my-business-.html\" class=\"fl-list-item-link\">\n                                    <span>Does My Business Need a Tax ID Number?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/is-a-wealth-tax-legal-and-constitutional.html\" class=\"fl-list-item-link\">\n                                    <span>Is a &#039;Wealth Tax&#039; Legal and Constitutional?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-are-back-taxes-.html\" class=\"fl-list-item-link\">\n                                    <span>What Are Back Taxes?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/the-property-ad-valorem-tax.html\" class=\"fl-list-item-link\">\n                                    <span>Ad Valorem Property Taxes<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-carried-interest-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is Carried Interest?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/tax-return-confidentiality-and-disclosure-laws.html\" class=\"fl-list-item-link\">\n                                    <span>Tax Return Confidentiality and Disclosure Laws<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/taxpayer-relief-act-of-1997.html\" class=\"fl-list-item-link\">\n                                    <span>Taxpayer Relief Act of 1997<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/personal-income-taxes-overview.html\" class=\"fl-list-item-link\">\n                                    <span>Personal Income Tax: Overview<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-2-category-overview\"\n               aria-labelledby=\"button-2-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-2-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-2-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Filing Taxes\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-2-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/filing-taxes.html\" class=\"fl-list-item-link\">\n                                    <span>Filing Taxes<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/tax-exemptions.html\" class=\"fl-list-item-link\">\n                                    <span>Tax Exemptions<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/do-i-have-to-file-a-federal-tax-return.html\" class=\"fl-list-item-link\">\n                                    <span>Do I Have to File a Federal Tax Return?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/filing-late-returns-faq.html\" class=\"fl-list-item-link\">\n                                    <span>Filing Taxes Late FAQ<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/determining-tax-filing-status.html\" class=\"fl-list-item-link\">\n                                    <span>Determining Tax Filing Status<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/do-i-need-to-file-a-paper-tax-return.html\" class=\"fl-list-item-link\">\n                                    <span>Should I E-File My IRS Return?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-happens-after-i-file-my-taxes.html\" class=\"fl-list-item-link\">\n                                    <span>What Happens After I File My Taxes?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/when-do-i-have-to-file-my-taxes.html\" class=\"fl-list-item-link\">\n                                    <span>When to File Taxes<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/preparing-your-tax-return.html\" class=\"fl-list-item-link\">\n                                    <span>Tax Return Preparation<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-3-category-overview\"\n               aria-labelledby=\"button-3-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-3-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-3-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Paying Taxes\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-3-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/how-to-pay-your-taxes.html\" class=\"fl-list-item-link\">\n                                    <span>How To Pay Your Taxes<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/getting-an-extension-of-time-to-file-taxes.html\" class=\"fl-list-item-link\">\n                                    <span>Getting a Tax Filing Extension<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/the-irs-installment-agreement.html\" class=\"fl-list-item-link\">\n                                    <span>The IRS Installment Agreement<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/do-i-have-to-pay-taxes-on-a-gift.html\" class=\"fl-list-item-link\">\n                                    <span>Do I Have to Pay Taxes on a Gift?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/do-you-need-to-report-your-online-sales-to-the-irs.html\" class=\"fl-list-item-link\">\n                                    <span>Do You Need To Report Your Online Sales to the IRS?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-an-offer-in-compromise-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is an Offer in Compromise?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-are-capital-gains-.html\" class=\"fl-list-item-link\">\n                                    <span>What Are Capital Gains?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-a-tax-lien-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is a Tax Lien?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/how-to-set-up-a-payment-plan-with-the-irs.html\" class=\"fl-list-item-link\">\n                                    <span>How To Set up a Payment Plan With the IRS<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-gross-income-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is Gross Income?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-adjusted-gross-income-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is Adjusted Gross Income?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/paying-taxes.html\" class=\"fl-list-item-link\">\n                                    <span>Paying Taxes<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-4-category-overview\"\n               aria-labelledby=\"button-4-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-4-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-4-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Tax Credits\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-4-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-a-tax-credit-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is a Tax Credit?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/family\/child-support\/the-child-tax-credit.html\" class=\"fl-list-item-link\">\n                                    <span>What Is the Child Tax Credit?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-the-savers-credit-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is the Savers Tax Credit?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-the-earned-income-tax-credit-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is the Earned Income Tax Credit?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-is-the-alternative-minimum-tax-.html\" class=\"fl-list-item-link\">\n                                    <span>What Is the Alternative Minimum Tax?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-5-category-overview\"\n               aria-labelledby=\"button-5-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-5-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-5-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Tax Deductions\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-5-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/best-tax-deductions-for-professionals.html\" class=\"fl-list-item-link\">\n                                    <span>Best Tax Deductions for Professionals<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/the-standard-deduction.html\" class=\"fl-list-item-link\">\n                                    <span>The Standard Deduction<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/what-are-itemized-deductions-.html\" class=\"fl-list-item-link\">\n                                    <span>What Are Itemized Deductions?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/charitable-contributions.html\" class=\"fl-list-item-link\">\n                                    <span>Charitable Contributions<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/non-deductible-expenses.html\" class=\"fl-list-item-link\">\n                                    <span>Non-Deductible Business Expenses: What You Can&#039;t Write Off<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/who-should-itemize.html\" class=\"fl-list-item-link\">\n                                    <span>Who Should Itemize?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-6-category-overview\"\n               aria-labelledby=\"button-6-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-6-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-6-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Tax Tips and Resources\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-6-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/last-minute-tax-tips-for-late-filers.html\" class=\"fl-list-item-link\">\n                                    <span>Last Minute Tax Tips for Late Filers<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/top-seven-senior-tax-breaks.html\" class=\"fl-list-item-link\">\n                                    <span>Top Seven Senior Tax Breaks<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/top-tax-myths-debunked.html\" class=\"fl-list-item-link\">\n                                    <span>Top Tax Myths Debunked<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/ten-ways-to-lower-your-taxes.html\" class=\"fl-list-item-link\">\n                                    <span>10 Ways to Lower Your Taxes<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/your-brokerage-account-tax-implications-of-joint-tenancy.html\" class=\"fl-list-item-link\">\n                                    <span>Tax Implications of Joint Tenancy with Rights of Survivorship (JTWROS)<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/handling-tax-mistakes.html\" class=\"fl-list-item-link\">\n                                    <span>Handling Tax Errors<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/final-review-before-you-mail-your-tax-forms.html\" class=\"fl-list-item-link\">\n                                    <span>Final Review Before You Mail Your Tax Forms<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/cryptocurrency-taxes-and-regulations.html\" class=\"fl-list-item-link\">\n                                    <span>Do I Need To Pay Cryptocurrency Taxes?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/marriage-tax-penalty.html\" class=\"fl-list-item-link\">\n                                    <span>Marriage Tax Penalty<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n<h2>The Federal Tax System<br>\r\n<\/h2>\r\n<p>The&nbsp;<a href=\"https:\/\/codes.findlaw.com\/us\/title-26-internal-revenue-code\/\" target=\"_blank\" rel=\"noopener\">Internal Revenue Code<\/a>&nbsp;(IRC) in the U.S. Code contains all the federal laws governing tax revenue, including income, employment, estate, gift, alcohol, and tobacco taxes. Congress wrote the IRC, and it governs most of the operations of the IRS. The IRS is the agency within the&nbsp;<a href=\"https:\/\/home.treasury.gov\/\" target=\"_blank\" rel=\"noopener\">U.S. Treasury Department<\/a>&nbsp;that oversees tax assessments and tax collection.<\/p>\r\n<p>The IRS also interprets the tax code and provides taxpayers with tax guidance via various publications, notices, rulings, and statements. While the IRS is the agency given the most responsibility for interpreting federal tax law, if a taxpayer disagrees, they can challenge the IRS in&nbsp;<a href=\"https:\/\/www.findlaw.com\/litigation\/legal-system\/us-federal-court-system.html\">federal court<\/a>. If a judge determines that the IRS misinterpreted a tax statute, the agency must abide by their ruling.<\/p>\r\n<h2>Personal Income Tax<\/h2>\r\n<p>The government bases your&nbsp;<a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/individuals-and-income-tax.html\">personal income tax<\/a>&nbsp;on the wages, salaries, dividends, interest, and other income you earn during the tax year. You generally must file your personal income tax return for the previous year on April 15, but the IRS can push that date back to as late as April 18, depending on whether it falls on a weekend or holiday.<\/p>\r\n<h3>Does Everyone Need to File?<\/h3>\r\n<p>People who earn less than a specified amount do not have to file a personal income tax return. For example, you don&#8217;t need to file a return if you are under 65 and earn less than $12,950 in 2022 ($14,700 for those 65 and older). The government adjusts the threshold for filing a return annually for inflation. It varies depending on age and whether the filer is single, married, or head of household. Check out the&nbsp;<a href=\"https:\/\/www.irs.gov\/newsroom\/who-needs-to-file-a-tax-return\" target=\"_blank\" rel=\"noopener\">IRS website<\/a>&nbsp;for more information on which thresholds apply to you.<\/p>\r\n<p>Even if you are under the filing threshold, it is generally a good idea to file a return even if you owe no taxes. That is because the federal government uses income tax returns to distribute financial benefits. Many low-income taxpayers are eligible for the&nbsp;<a href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/earned-income-tax-credit-eitc\" target=\"_blank\" rel=\"noopener\">earned income tax credit<\/a>&nbsp;(EITC), which the government distributes in the form of a tax refund, even if you paid no taxes. But you can only claim the credit by filing a return. During the COVID-19 pandemic, the federal government provided a child tax credit to help distressed taxpayers, but that credit is no longer available.<\/p>\r\n<h4>Do Nonresidents Need to File?<\/h4>\r\n<p>The United States imposes an income tax on all its citizens and permanent residents, no matter where they live. Thus, U.S. citizens living abroad and permanent residents who may be working outside of the country are still treated the same as U.S. residents for tax purposes and must pay taxes on all their income.<\/p>\r\n<h3>How is Your Tax Calculated?<\/h3>\r\n<p>The federal income tax is a &quot;graduated tax&quot; in that taxpayers at higher income levels generally pay taxes at higher rates, with their tax rate increasing as their income increases. In theory, this means high earners pay more taxes than those earning less, but high-income taxpayers can often offset a large part of their income with deductions to lower their tax bill substantially.<\/p>\r\n<p>Each fall, the IRS updates its income tax brackets for the upcoming year. These tax brackets determine the tax rates for income earned by individual taxpayers during the year. For example, if you earn $50,000 in 2023, you will fall into the 22% tax bracket. But, due to the way the IRS calculates the individual income tax rate, you will only pay the 22% rate on some of your income. You would pay 10% on the first $11,000 of income and 12% on all income between $11,001 and $44,725. Then, any income over $44,725 is taxed at 22%. Thus, you will only pay the 22% rate on the final $5,275 you earn ($50,000 minus $44,725).<\/p>\r\n<h3>What Income is Taxed?<\/h3>\r\n<p>It may come as a surprise, but the IRS doesn&#8217;t use all the income you earn during the year to calculate your tax bill. This income will sometimes include Social Security benefits above a set amount. You can claim tax deductions and make other adjustments to reduce the income subject to tax. First, a taxpayer subtracts such items as student loan interest and contributions to retirement accounts from their total income to arrive at their adjusted gross income (AGI). The taxpayer then subtracts any deductions they are eligible to claim to arrive at their taxable income.<\/p>\r\n<p>Most Americans claim the standard deduction based on their filing status. For 2023, the standard deduction was $13,850 for single taxpayers, $27,700 for married taxpayers filing jointly, and $20,800 for heads of household. But, if you have other deductions that total more than the standard deduction, you can&nbsp;<a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/who-should-itemize.html#:~:text=The%20TCJA%20nearly%20doubled%20the,2023%20and%20%2427%2C700%20for%20MFJ.\">itemize your deductions<\/a>. Common itemized deductions include charitable contributions, property taxes, state taxes, local taxes, and sales taxes.<\/p>\r\n<h2>Other Types of Federal Taxes<\/h2>\r\n<p>The following sections provide a brief overview of some of the taxes that the federal government collects.<\/p>\r\n<h3>Employment Taxes<\/h3>\r\n<p>The income tax is not the only tax you will pay based on your earnings. Your Social Security taxes and Medicare taxes are also assessed as a percentage of your earnings. These&nbsp;<a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/payroll-taxes.html\">payroll taxes<\/a>&nbsp;are unusual in that your employer covers half of your tax burden. That means the 6.2% Social Security tax you pay on your earnings is matched by a 6.2% payment from your employer. Your employer also matches the 1.45% Medicare tax rate.<\/p>\r\n<p>If you are self-employed, there is no employer to cover half of your Social Security and Medicare taxes. That means you must pay the entire 15.3% yourself. Fortunately, you can deduct half of that amount from your income for the year.<\/p>\r\n<h3>Estate Taxes<\/h3>\r\n<p>After the passage of the 2017 Tax Cuts and Jobs Act, most Americans no longer needed to worry about the&nbsp;<a href=\"https:\/\/www.findlaw.com\/estate\/planning-an-estate\/estate-tax-laws.html\">estate tax<\/a>. The legislation included a large estate tax exemption that gets adjusted for inflation each year. For 2023, the individual estate tax exemption is $12.92 million ($25.84 million per married couple). For estates above those amounts, the estate tax rate runs from 18% to 40%.<\/p>\r\n<h3>Gift Taxes<\/h3>\r\n<p>A gift&#8217;s giver pays the&nbsp;<a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/do-i-have-to-pay-taxes-on-a-gift.html#:~:text=The%20IRS%20sets%20an%20annual,the%20annual%20exclusion%20is%20%2417%2C000.\">federal gift tax<\/a>, not the recipient. It applies to any transfer of money or assets where the recipient does not give something of equal value in return. But the IRS excludes gift amounts of $17,000 or less ($34,000 for married couples) from the tax. For gifts that exceed the exclusion amount, the IRS taxes the gift at 18% to 40%, depending on the size.<\/p>\r\n<h3>Capital Gains Taxes<\/h3>\r\n<p>When you sell an asset that you&#8217;ve had for longer than one year, you pay capital gains taxes on the profits from the sale. This usually applies to the sale of items like real estate, stocks, and bonds. As a general rule, the capital gains tax rate is lower than the income tax rate as part of a tax policy that encourages long-term investments.<\/p>\r\n<h3>Corporate Income Tax<\/h3>\r\n<p>Companies registered as C corporations during their fiscal year pay a corporate income tax on business income. This business tax usually only applies to large companies because most small businesses operate as sole proprietorships, partnerships, or S corporations, that are taxed like partnerships.<\/p>\r\n<h3>Excise Taxes<\/h3>\r\n<p>We pay excise taxes on specific goods, services, and activities. We pay excise taxes on things like tobacco, airline tickets, fuel, and heavy trucks.<\/p>\r\n<h2>More Questions? Talk to a Tax Lawyer<\/h2>\r\n<p>Federal taxes are often complex, and many taxpayers need help figuring out how tax laws apply to their personal tax situation. That&#8217;s where a skilled&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/taxation-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">local tax attorney<\/a>&nbsp;can help. A tax lawyer can help you determine which taxes you must pay and your tax liability. If you owe the IRS money, a tax attorney can help you get tax relief by helping set up a payment plan or negotiating an offer in compromise.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" 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<fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n               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  class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n\n\n    <\/div>\n    \n    <div class=\"fl-section-sidebar\">\n        <div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    You may need a certified public accountant (CPA), enrolled agent (EA), or a tax attorney for your tax issues or IRS concerns\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Complex tax cases (such as back taxes, criminal tax matters, tax litigation, or serious issues with the IRS) may need the support of an attorney\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>Tax issues and IRS matters can be challenging. A tax attorney has advanced training to offer tailored advice to resolve complicated tax situations.<\/p>\n\n            <\/div>\n                            <div class=\"fl-editors-summary-content-link fl-flex\" data-testid=\"fl-editors-summary-content-link\">\n                <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                <p class=\"find-attorney\">\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/taxation-law\/#USER_GEO\/?fli=esum:FL47\" title=\"Tax Law Attorney Directory\" target=\"_blank\" rel=\"noopener\">Find a local attorney<\/a><\/p>\n\n            <\/div>\n            <\/div>\n<\/div>\n\n\n    <div class=\"popularDirectory\">\n        <div class=\"general-popular-directory \">\n            <div class=\"general-popular-directory-title\">\n                <h3>Attorney Directory<\/h3>\n            <\/div>\n            <ul>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/tax-increment-financing\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">Tax Increment Financing Attorney<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/taxation-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">Tax Law Attorney<\/a><\/li>\n                            <\/ul>\n        <\/div>\n    <\/div>\n\n\n    <\/div>\n<\/div><div class=\"popularRecent\">\n    <div class=\"row popular-recent\">\n        <h2 class=\"popular-recent-title\">Looking for More Information?<\/h2>\n        <div class=\"popular-recent-item\">\n            <div class=\"popular-recent-item-image\">\n                <img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/images\/w_1200,c_limit,dpr_auto\/f_auto,q_auto:eco\/v1745849290\/ability-law\/wp-prod\/general-components-popular-recent-popular\/general-components-popular-recent-popular.svg?_i=AA\"\n                    alt=\"\">\n            <\/div>\n            <div class=\"popular-recent-item-content\">\n                <h3>Popular Law Articles<\/h3>\n                <ul class=\"fl-list\">\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/top-seven-senior-tax-breaks.html\">Top Seven Senior Tax Breaks<\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/is-a-tax-id-required-for-my-business-.html\">Do I Need a Tax ID Number for My Business?<\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/ten-ways-to-lower-your-taxes.html\">Ten Ways to Lower Your Taxes<\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/your-brokerage-account-tax-implications-of-joint-tenancy.html\">Your Brokerage Account: Tax Implications of Joint Tenancy<\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/tax-basics-a-beginners-guide-to-taxes.html\">Tax Basics: A Beginners Guide to Taxes<\/a>\n                        <\/li>\n                                    <\/ul>\n            <\/div>\n        <\/div>\n        <div class=\"popular-recent-item\">\n            <div class=\"popular-recent-item-image\">\n                <img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/images\/w_1200,c_limit,dpr_auto\/f_auto,q_auto:eco\/v1745849421\/ability-law\/wp-prod\/general-components-popular-recent-recent_12960fdca\/general-components-popular-recent-recent_12960fdca.svg?_i=AA\"\n                    alt=\"\">\n            <\/div>\n            <div class=\"popular-recent-item-content\">\n                <h3>Most Recent Law Articles<\/h3>\n                <ul class=\"fl-list\">\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" 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A Guide to Avoiding IRS Penalties\n                            <\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/non-deductible-expenses.html\">\n                                A Business Owner&#8217;s Guide to IRS Audit Red Flags\n                            <\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/tax-return-confidentiality-and-disclosure-laws.html\">\n                                Tax Return Confidentiality and Disclosure Laws\n                            <\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/the-irs-and-your-rights.html\">\n                                The Taxpayer Bill of Rights: How To Protect Yourself in an IRS Dispute\n                            <\/a>\n                        <\/li>\n                                    <\/ul>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Most U.S. residents must file a tax return with the IRS each year. FindLaw discusses federal taxes and the situations to which they apply.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":353937,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/OverviewPageController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2746],"tags":[],"state_laws_tags":[],"flmsa":[],"class_list":["post-353938","page","type-page","status-publish","hentry","category-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/353938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=353938"}],"version-history":[{"count":0,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/353938\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/353937"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=353938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=353938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=353938"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=353938"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=353938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}