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?

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

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.

Standard Deduction$0 Federal income tax$10,453 State taxes Marginal tax rate5.5% Effective tax rate 4.64% New York state tax$3,245 Gross income$70,000 Total income tax-$13,698 After-Tax Income$56,302 ...

Q. I have two retirement accounts: one was pulled from my paycheck before taxes, so I know that I’ll pay taxes on when I use it. The other I’ve been contributing into for 20 years with money ...

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.

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 ...

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.