Your taxable income is the portion of your income subject to federal tax, and it’s important for several reasons. To start, ...

And this is something that varies depending on where you live and work. Here's a primer on income tax: what it is, how it works, how to calculate it and which states don't have it. What is income tax?

Adjusted gross income is an important number used to determine how much you owe in taxes. It's a factor in determining your federal tax bracket and taxable income -- the portion of your income ...

This particular tax is generally imposed by the state. Depending on your situation, there are certain exemptions, deductions or credits that could make you eligible to not pay taxes on your income.

Check Out: What To Do If You Owe Back Taxes to the IRS When you know how to calculate your adjusted gross income, you can estimate how much tax you have to pay the government.

The purpose of income tax is to pay for public services and government obligations and toprovide goods for the public. For example, personal income taxes help fund Social Security, schools and roads.