Federal Income Tax 2004

Income tax rates can change from year to year and normally do vary quite a bit every yearly tax cycle.

Income taxes are taxes that you pay on any and all income that you make during the current tax year. A tax year is a calendar year and runs from January through December. Any money that you make during that year counts an income. Although there is some income that will not be reported to the Internal Revenue Service at the end of the year most of it will need to be reported.

The type of income that is more normally reported is earned income. Earned income is money that you earn from work. Depending on how much each check is they automatically take out a certain amount before you even get the check to help cover your income taxes at the end of the year. Depending on how much money you put into your taxes automatically through any paychecks will determine how much you either pay into taxes at the end of the year or how much you get back in a refund for overpaying your taxes.

If you pay more in taxes during the year than you actual tax burden is at the end of the year you will end up being due a return at the end of the tax year instead of owing taxes to the Internal Revenue Service you will be getting a payment back from them for overpayment.

The rate you have to pay on your income every year actually changes depending on many factors. The economy, the value of money, and just the state of the United States in general will change the rate that you must pay to the Internal Revenue Service at the end of the year. In 2004 the rates were lower than they are currently. As minimum wage goes up taxes that you pay will generally go up as well. State taxes will also go up and down depending on the financial situation of the state.

To find out the federal tax rates you can contact the INternal Revenue Service, contact a tax professional, or even just do some searching online. If you need to find out what your local state income tax rates are you can contact your local state office, go online, or contact a tax professional.