Income tax is a tax imposed by the government on the income you earn from various sources, such as your job, investments, or business activities. You pay it to fund government programs and services, including infrastructure, education, and healthcare.

The deadline for filing income tax returns typically falls on April 15th of each year in the United States. However, this date may vary in different countries or due to specific circumstances, so it's essential to check the deadline that applies to you.

To calculate your taxable income, subtract eligible deductions, exemptions, and credits from your total income. The result is the income on which you'll be taxed.

Tax deductions are expenses or allowances that reduce your taxable income, potentially lowering the amount of income subject to taxation. Common deductions include mortgage interest, medical expenses, and student loan interest. Eligibility for deductions depends on your specific situation and the tax laws in your country.

Tax deductions reduce your taxable income, while tax credits directly reduce the amount of tax you owe. For example, a $1,000 tax deduction lowers your taxable income by $1,000, whereas a $1,000 tax credit reduces your actual tax liability by $1,000.

The requirement to file taxes varies by country and specific circumstances. In many cases, if your income falls below a certain threshold, you may not be required to file a tax return. However, it's advisable to check with your tax authority to determine your filing obligations.

Penalties for late or non-filing of taxes vary by jurisdiction but may include fines, interest on unpaid taxes, and legal action. It's essential to file your taxes on time or request an extension if you can't meet the deadline.

To minimize your tax liability legally, you can take advantage of tax deductions, credits, and exemptions applicable to your situation. Additionally, consider tax-advantaged savings accounts, retirement plans, and consulting with a tax professional for personalized strategies.