Tax Reform: Before and After Full Size Version Share | Related Content The Facts About Income Tax Millions faithfully file their 1040 forms each April. But some things about federal income taxes may surprise you. 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. Social Security Taxes Estimate how much of your Social Security benefit may be considered taxable.