Idaho Falls Tax Preparation

It is the law for U.S. citizens to pay income taxes, according to the 16th Amendment. If you live in the Idaho Falls area, you'll need an Idaho Falls tax preparation professional to help file your taxes each year that you make an income. 

The reason income taxes are necessary is because the government can't operate without receiving revenue from its citizens. The amount of annual income tax you pay is generally based on how much money you make within that year. The majority of money you receive within a year is subject to income tax. This includes money that you may win from playing the lottery, royalties, unemployment, rent that you receive from a tenant who lives in a property you own, and any earnings you receive from running your own business, in addition to a traditional salary.

The Congressional Budget Office asserts that income taxes from individuals are the main source of income or revenue for the government. For instance, in 2008, U.S. citizens paid around $1.15 trillion in taxes, which made up about 45 percent of the federal government's revenue

What Are Income Taxes?

"Income tax" is the general term used to describe the money that individuals pay based on the profits they earn. However, an Idaho Falls tax preparation professional may also explain to your that these taxes are also paid by estates, trusts and corporations. Several other types of business entities are also subject to income taxes. Corporate income taxes made up about $304 billion of the government's revenue in 2008, which account for around 12% of the federal budget, according to the Congressional Budget Office.

Besides your national income tax, you may also have to pay a tax that is state-specific. Idaho is one of the states that requires this state tax. As of 2013, the only states that do not require you to pay additional taxes are Florida, Alaska, Texas, Washington, Wyoming, Nevada and South Dakota.

To get a better understanding of income taxes and to find out exactly what you owe, contact an Idaho Falls tax preparation professional to help organize your tax forms and assist you in paying your income taxes before the April 15 deadline.