federal tax

Federal tax is the amount of money the government collects from individuals and businesses to fund public services like defense, education, and infrastructure. It is calculated based on income, with higher earnings generally paying a higher percentage. These taxes are collected through various forms such as income tax, payroll tax, and corporate tax. People often work with tax professionals or use software to determine their owed amount and file annual returns with the IRS. Federal taxes play a crucial role in maintaining and improving national programs and services for all citizens.