Income Tax on Individuals

Every individual who is a citizen or resident of the United States and has gross income that equals or exceeds the applicable threshold amount must file an income tax return. Taxable income is computed by subtracting deductions from gross income, and the tax is determined using the applicable rate schedule based on filing status.

Income includes compensation for services, gross income from business, gains from property, interest, rents, royalties, dividends, alimony received (for pre-2019 agreements), annuities, and income from any other source. Certain income is excluded, including gifts, inheritances, and qualifying municipal bond interest.