Ratified in 1913, the Sixteenth Amendment gave Congress clear power to levy an income tax. That same year, the Revenue Act of 1913 introduced a modest federal income tax—permanent, scalable, and ready to grow. Progressives saw income tax as a way to make the system fairer, shifting the burden away from tariffs and consumption.

If passed, the Service Members Tax Relief Act would eliminate federal income tax on all active-duty and reserve pay, as well as military bonuses.

Many people will be shocked when they discover the intricate rules — and lack of supporting paperwork — when filing 2025 federal income tax returns.

Thanks to Trump's spending bill, taxpayers in the U.S. can expect no taxes on overtime and tips beginning this upcoming tax season.

Social Security rules have some changes in store for 2026, such as tax rules and cost-of-living adjustments. Here's what retirees need to know.