Federal Income Tax
Definition of 'Federal Income Tax'A tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts and other legal entities. Federal income taxes are applied on all forms of earnings that make up a taxpayer's taxable income, such as employment earnings or capital gains. |
|
Investopedia explains 'Federal Income Tax'It is important to distinguish between the general notion of income tax and federal income tax. In the United States, governments at the state level may also levy income taxes in addition to federal income taxes. Not all states have implemented state level income taxes. For example, the states of Texas and Florida are just two of the handful of states in which federal income taxes are the only income taxes that are levied. |
|
Related Definitions
Articles Of Interest
-
Avoiding Too Much Tax On Your Distributions
IRA assets can't be taxed twice - find out how to avoid paying the second time around. -
Tax Tips For The Individual Investor
We give you seven guidelines to help you keep more of your money in your pocket. -
Best Solutions For An Unexpected Tax Bill
Finding out you owe when you expected a refund is a nasty shock. Find out how to cope with the bad news. -
How To Owe Nothing On Your Federal Tax Return
You have the control to determine whether you owe in April. Learn more here. -
The Bear On Bonds
Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy. -
Cut Taxes By Reporting Property Damage
Know the options you have for your insured property if and when a disaster strikes. -
How does the marginal tax rate system work?
The marginal tax rate is the rate of tax that income earners incur on each additional dollar of income. As the marginal tax rate increases, the taxpayer ends up with less money per dollar earned ... -
New Tax Rules Target The Top Tax Bracket
The American Taxpayer Relief Act brings about new tax rules for the wealthy that people such as Warren Buffett have been calling for over the last few years. -
The Financial Fallout Of The DOMA Repeal For Same-Sex Couples
The recent Supreme Court decision to repeal the Defense of Marriage Act has paved the way for same-sex couples to enjoy the same federal benefits as opposite-sex couples. -
Is It Foolish To Strive For The American Dream?
Even Jay Gatsby's stubborn optimism in The Great Gatsby would be hard pressed to believe that rags-to-riches stories are possible in today's economy. Find out why the ever-increasing wealth gap ...
Free Annual Reports