Every business, Individuals, and partner needs to file their income tax within the due date. Income Tax in the US is imposed by Federal, some state, and local authorities.

Every individual earning Income from any source needs to pay tax on their Taxable Income. For Income tax purposes the taxable Income is derived by deducting allowable deductions from Gross Income.

The Internal Revenue Code states that “gross income means all income from whatever source derived,” It may Include wages, Tips, Profit from sale of property, interest, Dividend, Rent, Pensions, Alimony, profit from the partnership, and others.

Residents are subject to withholding of Income-tax on wages but in case of addition of other income, to avoid the penalties of underpayment, one should make an estimated installment tax payment.

For calculation of estimated tax, here are the 2020 Income Tax table