- The aspect of Hope's deductions that will definitely change as a result is Her Federal tax
Federal income taxes are simply known to be collected by the federal government to pay their bills
State taxes are often collected by individual state governments to pay their specific state bills.
Income tax are simply regarded as Taxes on income, both earned in salaries, wages, tips, commissions and also those unearned in form of interest and dividends.
Conclusively, Income taxes can be levied on both individuals and businesses.
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