• The federal income tax is the largest source of revenue for the US government.

  • Federal income tax is used for a variety of expenses, ranging from building and repairing the country’s infrastructure to improving education and public transportation and providing disaster relief.
  • Federal income taxes are based on your income and filing status; the same federal tax rates apply to everyone, no matter where they live or work.
  • Federal income taxes are collected by the federal government, while state income taxes are collected by the individual states where the taxpayer resides and earns income.
  • Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax.