Question

Which are types of income tax that people pay? Check all that apply.

Answer 1

Answer;

-Federal

-Local

-State tax

Explanation;

-A federal income tax is a tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities.

-All businesses must pay state income taxes. Some businesses, such as corporations, are taxed as separate entities for income purposes, while the income of other businesses is not taxed separately from the incomes of their principal owners.

-A local tax is usually collected in the form of property taxes, and is used to fund a wide range of civic services from garbage collection to sewer maintenance. The local taxes include:

• Property tax
• Operating tax, which is used by some cities in lieu of a business license
• Sales tax, if your business is engaged in retail sales
• Income tax, which is rare but may be imposed on businesses operating in larger cities

Answer 2

Federal

Local

State

are the correct answers