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 Maine, as in all states across the United States, federal income tax is levied 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 taxable income, which includes not only wages and salaries from employment but also capital gains, which are the profits realized from the sale of assets such as stocks or real estate. The federal income tax system is progressive, meaning that the rate of taxation increases as income rises. Taxpayers in Maine must comply with federal tax regulations and file annual tax returns with the IRS, typically by April 15th of each year, unless an extension is granted. It's important for taxpayers to understand the applicable tax rates, deductions, and credits that may affect their federal tax liability. For specific advice and guidance on federal income tax matters, individuals and entities should consult with a qualified attorney or tax specialist.