As you may have heard your parents discussing, April is the month in which income taxes are due in the United States. There are several types of taxes we pay when purchases are made, such as sales tax on clothing and personal items. Other taxes, like personal property taxes on boats or cars and real estate taxes on homes, are assessed annually.
When you are employed, your pay stub will list the types of taxes that are withheld from your check. Federal income taxes fund many public services, including national defense, public roadways, and food and drug safety.
Social Security tax is deducted from paychecks so that once you reach retirement age, you will receive a monthly income based on what you paid into the fund. The Medicare tax helps cover medical costs upon retirement.
Taxes provide public services that are beneficial to all residents. To learn more, visit Understanding Taxes, apps.irs.gov/app/understandingTaxes/
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