Answer:
Income taxes are paid on an individual's entire economic gain.
Step-by-step explanation:
The income tax is a federal tax - as the name says - on income. That is, about everything you earn (in relation to money). And it also follows its patrimonial evolution. In order to carry out this monitoring, the Government asks workers and companies to inform the Federal Revenue Service about their annual earnings.
Throughout the year, you earn and spend money. In general, the income is taxed upon receipt. The following year, the IRS assesses whether what he charged you is really what you would need to pay according to the size of your earnings.