Income tax is a tax imposed by the government on income earned by individuals and companies. The amount of taxes to be paid is determined by the amount of an individual’s annual income. Taxes are collected throughout the year with each pay period and are based on information provided in the W-4 form submitted by the individual at the beginning of employment.
Each year individuals file documents with the IRS (Internal Revenue Service) to determine if the taxes paid throughout the year were sufficient. Sometimes more tax money is due. Sometimes due to overpayment throughout the year, a refund from the government is due. This process of filing your taxes occurs typically between mid-February and April 15th the annual deadline to file.