Income tax threshold
Okay little one, have you ever heard of income tax? No? Well, it's a tax or a fee that people pay to the government based on how much money they make in a year.
Now, the income tax threshold is like a line that separates people who have to pay taxes from those who don't. It's the amount of money you can make in a year without having to pay any income tax.
For example, let's say the income tax threshold is $10,000. If you make $9,000 or less in a year, you don't have to pay any taxes on that. But if you make $11,000, you have to pay taxes on the $1,000 that goes over the threshold.
The income tax threshold is different for different countries and even different states or provinces within a country. It's usually decided by the government to help make sure that people who make less money aren't burdened with too much tax while those who make more pay their fair share.
And that's income tax threshold explained like you're five.
Now, the income tax threshold is like a line that separates people who have to pay taxes from those who don't. It's the amount of money you can make in a year without having to pay any income tax.
For example, let's say the income tax threshold is $10,000. If you make $9,000 or less in a year, you don't have to pay any taxes on that. But if you make $11,000, you have to pay taxes on the $1,000 that goes over the threshold.
The income tax threshold is different for different countries and even different states or provinces within a country. It's usually decided by the government to help make sure that people who make less money aren't burdened with too much tax while those who make more pay their fair share.
And that's income tax threshold explained like you're five.
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