2.  A tax is a financial charge imposed on an individual or a legal entity by a state or function equivalent of a state.  It is the revenue that the government receives in order to pay the salaries of its employees and the services it provides for its citizens.  There are different kinds of taxes. Some are income tax, property tax and sales tax.  Taxes consist of direct tax or indirect tax and may be paid in money or as its labor equivalent.  The method of taxation and the government expenditure of taxes raised is often highly debate in politics and economics.

3.  Annual tax levied by the Federal government, most states, and some local governments, on an individual’s or corporation’s net profit.  Individual income taxes often tax the total income of the individual, while corporate income taxes often tax net income.  When tax is levied on the income of companies, it’s called a corporate tax.  A consumption tax charged at the point of purchase for certain goods and services.  It is usually set as a percentage by the government charging the tax.  Most sales taxes are collected by the seller, who pays the tax over to the government which charges the tax.  Some taxes are also charged on the sales of services

4.  Local tax assessed on property owned, such as real estate or automobiles.  It can be defined “tax imposed by municipalities upon owners of property within their jurisdiction based on the value such as property”.  The three types of property are: Land, Improvements to Land, and Personal.  The taxing authority requires or performs an appraisal of the monetary value of the property, an tax is assessed in proportion to that value.  The property tax rate can be given as a percentage or as a permille (amount of tax per thousand currency units of property value.

5.  Taxes are gathered so that the roads that we drive on can be built.  Also, it provides for police and the fire departments. They are run by our taxes and without them we wouldn’t be able to put out the fires or stop the criminals.  Taxations also pays for wars and for border protection.  Our Medicaid, agriculture, foreign affairs, veteran benefits, environmental and natural resources are also paid with those taxes.  They are also used so that schools can be run. Without taxes none of us would have a formal education.

6.  Your tax return must be postmarked no later than April 15 th or sent no later than that date if you’re filing electronically.  When April 15 th falls on a weekend, the deadline is pushed to the following business day.

7.  If the government or tax services find out you haven’t paid, you will be fined whatever you owed as well as other costs.  When the fine is given out, there is a fixed time period which the payment has to be made.  After the time has expired, usually the authorities will have you taken to court and you will have to explain why you have no paid.  In some cases, after the penalty and court, jail time is also used.  Also, the authorities may freeze any assets you might have first as part payment of whatever you owe them.  Another consequence is that you will have a legal history of tax evasion for a long time and it will be difficult to apply for a new job in the financial or business sector.

8.  A dependent is a person other than the taxpayer or spouse who entitles the taxpayer to claim a dependency exemption.  Each dependency exemption decreases income subject to tax by the exemption amount. The exemption amount changes each year.  To claim a dependency exemption for a qualifying child, all of the qualifying child dependency tests must be met: –Dependent Taxpayer Test –Joint Return Test –Citizenship Test –Relationship Test –Age Test –Residency Test –Support Test

9.  FILE : You might think you make too little money to file, but if you’ve had money withheld from paychecks, you have a refund coming.  START EARLY : Even if you haven’t received your W-2s, your final pay stub will have the pertinent tax information, such as income and how much was withheld. Taking a look at your situation, will help you know which issues might apply to your return.  PRACTICE : Even if you’re filing electronically, many people find it easier to fill out the paper forms and find your mistakes on paper.  DETERMINE WHERE YOU LIVE - If you’re going to college in one state and spending the summer at home, you have could have two states vying for your tax dollars.

10. TAKE EXTRA CREDIT : College students get a little help from the government in the form of credits and deductions. Whoever claims the student as a dependent is the one who is eligible for the credit. –Hope Scholarship Credit- Gives you take credit for up to 100 percent of your first $1,000 in tuition and fees and up to 50 percent for the second $1,000. –Lifetime Learning Credit- Gives you a tax credit equal to 20 percent of your tuition and certain related expenses up to $10,000. The credit maximum is $2,000. –Higher education expenses deduction- The deduction could be as much as $4,500 for families that meet the earning guidelines.