Listen to a Business English Dialogue About Federal income taxes
Avery: Hey Kinsley, do you know what federal income taxes are?
Kinsley: Yeah, federal income taxes are taxes that individuals and businesses pay to the government based on their income.
Avery: That’s right. How are federal income taxes collected?
Kinsley: They’re usually withheld from an individual’s paycheck by their employer and then paid to the government throughout the year.
Avery: Makes sense. Are federal income taxes the same for everyone?
Kinsley: No, they’re based on a person’s income level, with higher earners generally paying a higher percentage of their income in taxes.
Avery: I see. Are there any deductions or credits that can reduce federal income taxes?
Kinsley: Yes, there are deductions for things like mortgage interest, charitable contributions, and certain medical expenses, as well as tax credits for things like childcare expenses or education expenses.
Avery: That sounds helpful. How do people file their federal income taxes?
Kinsley: People usually file their taxes annually using tax forms provided by the government, such as the Form 1040 for individuals.
Avery: Got it. What happens if someone doesn’t pay their federal income taxes?
Kinsley: If someone doesn’t pay their taxes, they could face penalties, fines, or even legal action by the government to collect the owed amount.
Avery: That sounds serious. Are there any resources available to help people understand their federal income taxes better?
Kinsley: Yes, there are resources like tax preparation software, online guides, and assistance from tax professionals that can help individuals navigate the complexities of federal income taxes.
Avery: Thanks for explaining, Kinsley. Federal income taxes seem like an important aspect of personal finance.
Kinsley: You’re welcome, Avery. Understanding and managing taxes is crucial for financial planning and compliance with the law.