Question

You get your first paycheck and notice that a percentage of your money has gone to taxes. Your employer explains that everyone has to pay taxes. Why do you have to pay taxes? What would happen if you did not pay taxes? What type of taxes do you currently have to pay and why?

Answer 1

The money you paid on taxes goes to numerous spots. In addition to paying the wages of government laborers, your assessment dollars additionally help to help normal assets, for example, police and firemen. Tax money guarantees the streets you travel on are protected and well-kept up. Taxes support open libraries and parks.

In the event that you don't file taxes, you'll face an inability to-record punishment. The punishment is 5 percent of your unpaid taxes for every month your taxation form is late, up to 25 percent. Besides, on the off chance that you record over 60 days late, you'll pay at least $135 or 100 percent of the taxes you owe (whichever is less).

Three kinds of federal taxes are to be paid on wage and salary income:

1. Income tax
2. Social Security tax
3. Medicare tax.

Income tax pays for roads, government related construction, motorways etc.

The Social Security tax pays for the retirement, disability etc.

Medicare tax pays for the use of government health care facilities.