The federal income tax is a tax levied or charged by the Internal Revenue Service (IRS)—the revenue service of the United States (federal) government. The federal income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.
Federal income taxes are levied on all types of earnings that make up a taxpayer’s taxable income—including earnings from employment and from capital gains (income earned on the sale of assets).
In Texas, as in all states across the United States, federal income tax is levied by the Internal Revenue Service (IRS), which is the federal government's revenue service. This tax applies to the annual earnings of individuals, corporations, trusts, limited liability companies (LLCs), and other legal entities. The federal income tax encompasses various forms of income, including wages, salaries, and capital gains, which are profits from the sale of assets such as stocks or real estate. The amount of federal income tax an entity or individual owes is determined by their income level, filing status, and applicable tax rates, which are set by federal law. Taxpayers in Texas must comply with these federal tax regulations, despite the state not imposing a personal income tax of its own.
