By FinanceBuddy Staff Writer
Income taxes are two of the most dreaded words for some individuals to hear. No matter what you do or where you go, you will always pay income taxes. For some, the words don't even ring a bell. So what exactly is income tax? This is a tax that is placed on all funds or revenues that an individual or business has made. The government requires that all taxes be reported to them yearly; with the exception of those funds or revenues earned that are not over $600 per year. Federal governments and state governments require taxes on income, but for each entity there is a different percentage which can be charged. The federal government determines the amount of taxes an individual or business must pay by several options. These may include funds earned in a given time frame, how much was earned, marital status, dependents, profit/non-profit organizations, and so on. You can find an accurate listing on IRS.Gov. State income tax is determined by which state you live in. They also give tax increases and credits according to how you file. You can check with your state government to see exactly what criteria they require. Income tax is used to support our government, our people, our businesses, and much more. But no matter what, everyone who is living and breathing (with exception to those who are doing things that are illegal) will pay income tax. It's a fact of life.