what do my federal tax expenses include 
your annual tax return reports your income for the year and the taxes you owe in a number of categories including the bottom linea tax expense is an amount of money that a business or an individual owes to a government body whether it is federal state or local the term covers all taxes including capital gains taxes payroll taxes and sales taxes as well as income taxes each of these taxes has its own tax rate which is used to calculate the amount owed in most cases this means multiplying the applicable tax rate by the taxable income of the business or individual a notable exception of course is the sales tax the amount of sales tax owed is calculated by multiplying the applicable tax rate by the sales price of the goods or services being purchased 