Your federal income tax pays your share of the cost of running the federal government and the cost of the services it provides, including the military, roads, bridges, education, and much more. The Internal Revenue Service (“IRS”) is the federal agency responsible for collecting income tax. With the support of federal laws requiring employers and…Details
Most employers are required to withhold your estimated income tax from your pay. When you start working, your employer will have you fill out an IRS Form W-4. You report the number of exemptions from income tax that you want your employer to use when it calculates the taxes it will withhold from your pay.…Details
FICA stands for the Federal Insurance Contributions Act. It is also referred to as the “payroll tax.” This is money that your employer is required to withhold from your pay and match with its own contribution to fund Social Security and Medicare. Social Security provides income to the elderly, the disabled and the children of…Details
You (or your parents if you are a dependent) may be eligible for a tax credit for certain higher education-related expenses. The IRS website provides information and an interactive tool to help you determine eligibility at: https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit.
The IRS website provides a wealth of information and assistance: http://www.irs.gov. Be careful – many websites try to look like the IRS website and get you to buy information and services that IRS provides free. You may choose to seek paid tax advice but do not mistake a for-profit business for the free services and…Details