by 
The Curious Bag
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Individual income tax is one of the main taxes paid by citizens and a central source of revenue for the federal and state governments as well as many large cities.
History
The first income tax levied by the federal government came in 1861, during the Civil War. The 16th Amendment to the Constitution was passed in 1913 to remove some obstacles to a permanent income tax.
Requirement
Citizens and residents are required to file a tax return every year to report their income and whether they are liable to pay income tax. Tax is calculated as a percentage of your income. Individuals earning less than a minimum threshold do not have to pay taxes.
Method
Most people make tax payments through withholding on their paychecks. If too much is withheld, the taxpayer will receive a refund when the income tax return is filed. Self-employed people and other non-payroll workers are required to prepay their taxes for the year, with a certain amount due each quarter.
Enforcement
The U.S. Internal Revenue Service (IRS) administers and enforces federal tax law. Failure to file tax returns or pay taxes can result in penalties, fines or imprisonment.
Expert Insight
Most states and some cities also impose an individual income tax. Payments for these taxes are deductible from federal income tax.
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