A tax code is a series of laws and regulations that outline the rights and obligations of taxpayers, including individuals, corporations, and tax preparers, to avoid errors and penalties
. In the United States, the federal tax code is called the Internal Revenue Code (IRC), which is enacted by the U.S. Congress and implemented by the Internal Revenue Service (IRS)
. Tax codes help employers or payers determine how much tax to deduct from an employee's pay, benefits, or pension
. Tax codes can be found at various levels, such as federal, state, county, and city levels
. They are essential for understanding and preparing taxes, as they provide the basis for calculating taxable income and the amount of tax due on that income
. Tax codes can also refer to specific tax laws within the IRC, such as IRC section 162, which defines when you can claim a business deduction
. To find the appropriate tax code for your situation, you can consult resources provided by tax authorities, such as the IRS or your local tax jurisdiction, which typically make tax codes available online or in print
. It is crucial to inform your employer or payer if your tax code changes, as they will need to adjust your tax deductions accordingly
