A good example of a direct tax is the Federal income tax. You just gotta pay it. If you are, you receive dividends, or a portion of a company's earnings and profits. Add it all up, it's all earned income. Low-income workers can file a tax return to get an earned income credit, even if no income tax was withheld from the worker's pay.
Taxpayers can now file their tax information with personal computers and tax preparation software.
The information goes directly to the IRS and the IRS can directly deposit refunds into the taxpayer's bank account. Electronic filing allows taxpayers to get their refunds quickly. Check out IRS e-file. It may also be available in many other places in your local community. Well, taxpayers can be exempt from paying a certain amount of federal income tax if they meet certain income, tax liability, and dependency requirements.