The federal income tax is a tax imposed by the federal government on the annual earnings of individuals, businesses, and other entities. This includes all forms of income, such as wages, salaries, business income, tips, bonuses, and unemployment benefits.
The federal income tax is the largest source of revenue for the federal government and is used to fund various programs and services that benefit taxpayers. Although states like Washington, Texas, Florida, Alaska, Nevada, South Dakota, and Wyoming do not impose state income tax, most other states do so in addition to federal taxes.
