The Federal government made a total revenue from all their various income streams of $4.90 trillion in 2022! Part of that revenue will have been income taxes.
Every year, taxpayers have to pay their income taxes. But what are income taxes in more detail? And how do they differ from other forms of tax?
This article will go over everything you need to know about income taxes, including the different types of taxes, how to pay your taxes, and what you can do if you need financial help.
Read on to learn some valuable info!
Table of Contents
Types of Taxes
There are several different types of taxes that you might be required to pay, including individual taxes, payroll taxes, and self-employment taxes.
Individual taxes are the taxes that you pay on your personal income. This can come from a job, freelance work, investments, or other sources.
Payroll taxes are the taxes that are taken out of your paycheck by your employer. This includes Social Security and Medicare taxes.
Self-employment taxes are the taxes that self-employed individuals must pay on their income.
Paying Your Taxes
There are several different ways that you can pay your taxes, including electronic filing, paper filing, and paying with a credit or debit card.
Electronic filing, also known as e-filing, is the quickest and most convenient way to file your taxes. You can e-file your taxes through the IRS website or through tax preparation software.
Paper filing is an option if you prefer to file your taxes on a physical form. You can find tax forms and instructions on the IRS website.
Paying with a credit or debit card is another option for paying your taxes. You can make a payment online, by phone, or through a mobile app.
Financial Help
If you are struggling to pay your taxes, there are several options for financial help. The IRS offers payment plans and the ability to settle your tax debt for less than the full amount owed.
You can also apply for financial hardship, which can allow you to temporarily postpone paying your taxes. Additionally, the IRS has volunteer organizations that offer free tax preparation services for taxpayers who need assistance.
IRS Tax Lien
An IRS tax lien is a legal claim made by the government on your property when you owe taxes that you have not paid. This can include your house, car, or other assets.
If you have an IRS tax lien, it can affect your ability to obtain credit and can also impact your credit score. It is important to address your IRS tax lien as soon as possible to avoid further financial consequences.
The What are Income Taxes Question Answered
What are income taxes? Quite simply, they are that you pay on your personal income. If you are struggling to pay your taxes, there are options for financial help. If you have an IRS tax lien, it is important to address the issue as soon as possible to avoid further financial consequences.
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