Taxes are mandatory payable by individuals or corporations by a government. The tax is collected by the government and used for government activities which include public works and services such as roads and schools, or programs such as Social Security and Medicare. There are several types of taxes such as income tax, payroll tax, corporate tax, sales tax, property tax, tariff, estate tax. For most governments, taxes are the primary source of revenue. Collected taxes are spent to improve and maintain public infrastructure. In the United States, tax rates from 10% to 37%, the rate of tax is determined on the income of the person, taxation progressively increases with growing income. Taxes are applied in various ways such as business income, cost of goods sold, operating expenses (vehicle and transportation, studio supplies, business use of home expense, amortization of your equipment). It is important for taxpayers to understand the triggers of the tax situation in order to reduce taxes. There are two estate taxes that you need to be worried about, they are federal level and at this point in time 11.2 million dollars means you don’t pay any taxes unless your assets are over 11.2 million dollars, so everything under that you are free.