The Internal Revenue Service (IRS) is a United States government agency tasked with collecting yearly state and income tax from working residents and businesses. Most citizens pay income tax to the IRS annually, though in some cases quarterly prepayments are required for freelancers and businesses that exceed a given income threshold. The IRS is part of the Department of the Treasury.
IRS income tax is based on net income, or the amount left after legally allowed deductions have been taken from the gross (total) income. A person that falls within the poverty bracket may not be required to pay income tax at all, while a modest salary of 50,000 US Dollars (USD) per year can end up costing the earner approximately 20% of his or her net income in IRS taxes. Someone earning 120,000 USD annually might fall into a tax bracket closer to 25% of the net income. So IRS is like Income Tax. It collected form your Yearly income. Different country call it in different ways. But i’m sure every country has been implement this.
Source : http://www.wisegeek.com
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Tags: Internal Revenue Services, IRS, United States
February 23rd, 2009 at 1:07 pm
[...] freelance writer is a hobby or business. Internal Revenue Service (IRS) say if you writing not more than 5 years it is just a hobby. If more and making a lot of [...]