Income taxes are collected from U.S. residents on an annual basis. Money collected from these taxes is used to fund a number of services and programs including Medicare, Social Security, public works projects, public education, national security, and our welfare programs.
If you are employed, your employer will withhold your income taxes. Self-employed individuals will usually have to estimate this amount throughout the year. Personal income taxes also help the government to invest in technology and education to benefit all American citizens.