The federal income tax is a tax levied or charged by the Internal Revenue Service (IRS)—the revenue service of the United States (federal) government. The federal income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.
Federal income taxes are levied on all types of earnings that make up a taxpayer’s taxable income—including earnings from employment and from capital gains (income earned on the sale of assets).
In Maryland, as in all states across the United States, the federal income tax is imposed by the Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities. This tax applies to all forms of income that contribute to a taxpayer's taxable income, which includes, but is not limited to, wages, salaries, bonuses, and capital gains from the sale of assets. The federal tax system is progressive, meaning that the rate of taxation increases as income rises. Taxpayers in Maryland must comply with federal tax regulations and file annual tax returns with the IRS by the deadline, typically April 15th of each year, unless an extension is granted. It's important to note that this is separate from the state income tax that Maryland imposes on its residents, which operates under its own set of rules and rates.