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Taxes are mandatory financial charges imposed by the government on individuals and businesses to fund government spending and public services.

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To fill out taxes, individuals typically gather income information, deductions, and credits, then use forms (such as the 1040 in the U.S.) to report this information to the tax authority.

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The purpose of taxes is to fund public services and programs such as education, healthcare, infrastructure, and national defense.

What information must be reported on how do taxes work?

Taxpayers must report income, deductions, credits, and other relevant financial information as specified by tax authorities.

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