An individual income tax or a personal income tax, is a tax on a person’s income.
royalties earned on sales of patented or copyrighted items, such as inventions and books
dividends from stock.
Income also includes capital gains, which are profits from the sale of stock, real estate, or other investments whose value has increased over time.
The national governments of the United States and many other countries require citizens to file an individual income tax return each year.
Each taxpayer must determine his or her tax liability or the amount of money he or she owes the government.
The Internal Revenue Service (IRS), an agency of the Department of the Treasury, administers the federal income tax in the United States.