The Facts About Income Tax Millions faithfully file their 1040 forms each April. But some things about federal income taxes may surprise you. Share | Related Content Federal Income Tax Use this calculator to estimate your income tax liability along with average and marginal tax rates. What Is a 1035 Exchange? 1035 exchanges provide a way to trade-in an annuity contract or life insurance policy without triggering a tax liability. Tax Freedom Day Assess how many days you'll work to pay your federal tax liability.