What is income tax?

Question

how is it calculated??

Answer 1

Legalized theft by the government on your earnings (salary, interest, stock sales)

Answer 2

it is based on how much you earn and the frequency of pay dates

Answer 3

To calculate tax liability figures on your incomes/assets in the US, read IRS website http://www.irs.gov

Answer 4

Well, I will answer about federal income tax. It is a tax levied against the earnings of individuals and corporations.  The tax itself is often referred to as a "progressive" tax because the more you make, the higher the tax rate.  But, this is a misnomer because, economically it is a regressive tax.

The rate is determined by income, marital status, number of dependents, and educational status. One generally does not have to worry about calculating one's rate and amount of tax owed, as it is generally done by one's employer using the w-4 form and when one files a return, the IRS has a table to look up the tax amount.