Can someone explain how you get income tax and what it is????????

The 'tax net' refers to what types of money payments are charged the tax. Generally, tax will be charged on personal earnings (wages), capital gains, and business income. The rates for different types of income may vary and some may not be taxed at all. Capital gains may be taxed when realized (e.g. when shares are sold) or when incurred (e.g. when shares appreciate in value). Business income may only be taxed if it is â€˜significantâ€™ or based on the manner in which it is paid. Some types of income, such as interest on bank savings, may be considered as personal earnings (similar to wages) or as a realized property gain (similar to selling shares). In some tax systems â€˜personal earningsâ€™ may be strictly defined to require that labor, skill, or investment was required (e.g. wages); in others they may be defined broadly to include windfalls (e.g. gambling wins).

Tax rates may be progressive or flat. A progressive tax taxes differentially based on how much has been earned. For example, the first $10,000 in earnings may be taxed at 5%, the next $10,000 at 10%, and any more income at 20%. Alternatively, a flat tax taxes all earnings at the same rate. A tax system may use both progressive and flat taxes for different types of income.

Often income tax systems will have deductions available. Deductions lessen the total tax liability by reducing total taxable income.

Income tax systems may allow losses from one type of income to be counted against another. For example, a loss on the stock market may be deducted against tax paid on wages. Other tax systems may isolate the loss, such that business losses can only be deducted against business tax, by carrying forward the loss to later tax years.

Income tax is often collected on a pay-as-you-earn basis, with small corrections made soon after the end of the tax year. These corrections take one of two forms: payments to the government, for taxpayers who have not paid enough during the tax year; and tax refunds from the government for those who have overpaid.

Unfortunately you don't GET income tax unless you're the govt., rather you PAY income taxes. That's money (about 25%) taken from YOUR hard earned paycheck by the KGB... I mean IRS, and given to politician fat cats to line their pockets, and poor people who don't work and who's only job is to produce more poor people (children). This money is taken by force (or go to jail) and you have no say as to how it's spent.

My guess is you mean income tax refund. File your taxes based on your w-2 and filing status, maybe you will get a refund of a portion of the taxes you paid.

When your earn money you are required to PAY income tax to one or all of the following, city, state and/or federal governments... expect in very special circumstances.

Start with a job.....you'll figure it out from there.

Income tax is government's tax on everything you earn, you don't get it, you pay it to the government. If you don't work and get income, you don't have to pay income tax.

An income tax is a tax levied on the financial income of persons, corporations or other legal entities. Various income tax systems exist, ranging from a flat tax to a progressive tax or graduated income tax system. A tax levied on the income of companies is often called a corporate tax, corporate income tax or corporation tax. Individual income taxes generally tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income, the difference between gross receipts, expenses and additional writeoffs.

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