1. What Is Federal Income Tax?

Federal income tax is a tax levied by the Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. All working Americans are required to pay federal income tax on their earnings.

2. How Federal Tax Brackets Work

The U.S. uses a progressive tax system with marginal tax brackets:

Key Points:

• Tax brackets apply to income within specific ranges
• Higher income is taxed at higher rates
• Your entire income isn't taxed at your top bracket rate
• Different filing statuses have different bracket thresholds

3. Texas Federal Tax Considerations

Texas Specifics: Texas has no state income tax, so residents only pay federal income tax. However, Texas residents still need to file federal tax returns and pay applicable federal taxes.

4. Using The Calculator

Instructions: Enter your taxable income (after deductions and exemptions), select your filing status, and click calculate to determine your estimated federal tax liability.

5. Frequently Asked Questions (FAQ)

Q1: Does Texas have state income tax?
A: No, Texas is one of the few states with no state income tax. Residents only pay federal income tax.

Q2: What is taxable income?
A: Taxable income is your gross income minus all allowable deductions, exemptions, and adjustments.

Q3: How often are tax brackets updated?
A: Tax brackets are typically adjusted annually for inflation by the IRS.

Q4: Are there deductions available to Texas residents?
A: Yes, Texas residents can claim standard federal deductions and may qualify for various tax credits.

Q5: When is the federal tax filing deadline?
A: Typically April 15th each year, unless extended by the IRS.