Income Tax Lawyers in Atmore, Alabama
In Atmore, Alabama, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Typically, income from all sources may be taxed. The federal government has the authority to impose an income tax thanks to the 16th Amendment to the U.S. Constitution, enacted in 1916 after the Supreme Court had, on more than one occasion, found a federal income tax to be unconstitutional. Of course, before and after the creation of the federal income tax, states, including Alabama were allowed to impose income taxes of their own.
Everyone in the U.S. is subject to the federal income tax. But you are only subject to the income tax of the state in which you live. Some states have no income tax at all. You should speak with an accountant or tax lawyer in Atmore, Alabama if you don't know what the tax system is here.
You might have heard rumors claiming that you don't really have to pay your federal income tax. These rumors are false. "Tax protesters" rely on bizarre and discredited legal arguments in their claims that the federal income tax is somehow illegal. None of these arguments have ever been successful in U.S. Courts, and deliberately refusing to pay your income tax in Atmore, Alabama is a good way to end up in federal prison.
Income Tax Deductions in Atmore, Alabama
A tax deduction is a reduction in one's taxable income. For example, if a person makes $50,000 per year, and receives a $2,000 tax deduction, they will only have to pay taxes on the remaining $48,000.
This should not be confused with a tax credit, which is a reduction of a person's tax bill. A tax credit almost always results in a reduced tax burden than a tax reduction of the same amount.
Lots of expenses that are common in Atmore are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
If one's state imposes an income tax, some or all of these expenses may be deductible, as well. However, this will depend on the law of Alabama
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How Can A Atmore, Alabama Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in Atmore, Alabama and run into any type of tax problems, including an audit or wage garnishment, a local tax lawyer would almost certainly be able to help.