Federal tax is the tax imposed by the U.S. government on individuals’ and businesses’ income, as well as on other specific activities, such as selling property or earning capital gains. The Internal Revenue Service (IRS) is the government agency responsible for administering and collecting federal taxes.
U.S. citizens, residents, and even some non-resident aliens must file a federal tax return if their income exceeds certain thresholds set by the IRS. These thresholds depend on factors like filing status (e.g., single, married), age, and income type.
Key Forms for Federal Filing:
- Form 1040: The standard tax return form for individual taxpayers.
- Form 1040EZ: A simpler version of the 1040 form, designed for taxpayers with straightforward tax situations (e.g., no dependents, income under a specific threshold).
- Form W-2: Reports wages and salaries of employees.
- Form 1099: Reports income for contractors, freelancers, and other non-employees.
- Form 8862: Used to claim the Earned Income Tax Credit (EITC) after certain disqualifications.
Filing Deadlines:
The deadline to file a federal tax return is typically April 15 of each year (for the previous calendar year). If April 15 falls on a weekend or holiday, the deadline may be extended to the next business day.
