The tax rates and legislation surrounding each type of tax vary; however, there is a basic process for calculating the amount. The process for tax calculation involves taking a base rate and then applying that figure to a tax rate, as stated by Intuit TurboTax. Types of taxes include income tax, property tax and sales tax, notes Debt.org.Continue Reading
A tax is a collection imposed by a local, state or federal municipality, notes Debt.org. Taxes on income are calculated based on personal and business revenue less any eligible deductions. Real estate taxes are calculated by using a property value as the base rate and applying a property tax rate. This tax is unique, as the value of real estate fluctuates periodically. Finally, a sales tax is applied to purchases made in a retail setting. These taxes are enforced more locally as opposed to at the federal level.
Tax season is a period when individuals and businesses compile the necessary documentation to report tax obligations, notes Forbes. This documentation is then sent to the related governing body. In the United States, this body is the Internal Revenue Service. Given the complexity of tax calculation, a person can reference the IRS website for answers to many tax questions.Learn more about Taxes