In addition to federal income tax many people also pay

In addition to federal income tax, many people also pay state income tax. A federal income tax is a tax levied by the United States Internal Revenue Service on the annual earnings of all the types of legal entities. Along with federal income tax, people have to pay state income tax which is supported with the same conditions but it refers to the state not to the whole government. Rates of payment to state income tax depends on rules established in a particular state.

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