INCOME TAX
Everything about income tax? Income tax is a tax imposed on the income of individuals and entities by the government. The tax is usually calculated as a percentage of income earned over a certain period, with the percentage rate varying based on the income level. Here are some key concepts and information related to income tax: Taxable income: Taxable income is the amount of income that is subject to taxation. It is calculated by subtracting tax deductions and exemptions from total income. Tax deductions: Tax deductions are expenses that can be subtracted from taxable income to reduce the amount of income subject to taxation. Examples of tax deductions include mortgage interest, charitable contributions, and medical expenses. Tax brackets: Tax brackets are the income ranges that correspond to different tax rates. Taxpayers are assigned to a specific tax bracket based on their taxable income, and the tax rate they pay increases as their income rises. Tax credits: Tax credits
