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| For Individual >> |
Employee |
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| The federal income tax is a pay-as- you-go tax. There are two ways to pay as you go withholding. - If you are an employee, your employer probably withholds income tax from your pay. Tax may also be withheld from certain other income — including pensions, bonuses, commissions, and gambling winnings. In each case, the amount withheld is paid to the IRS in your name. Estimated tax - is used to pay... |
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| Salaries and Wages |
| Income tax is withheld from the pay of most employees. Your pay includes your regular pay, bonuses, commissions, and vacation allowances. It also includes reimbursements and other expense allowances paid under a no account plan. See Supplemental Wages, later, for more information about reimbursements and allowances paid under a no account plan. |
| If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding |
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| Estimated taxes |
| If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. People who are in business for themselves generally will have to pay their tax this way. You may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. |
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