Income Tax Lawyers in Pinson, Alabama
In Pinson, Alabama, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Generally, income from all sources can be taxed. The federal government has the power 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 free to impose income taxes of their own.
Everybody in the United States must pay the federal income tax. However, you only have to pay the state income tax of the state in which you reside. You should speak with an accountant or tax lawyer in Pinson, Alabama if you aren't clear about what system your state has.
You may have heard rumors that the income tax is unconstitutional, and one's obligation to pay the federal income tax can be fought in court. However, this position relies on fringe constitutional arguments which have never been adopted by any U.S. court. If you refuse to pay your federal income tax in Pinson, Alabama, you will face criminal charges.
Income Tax Deductions in Pinson, Alabama
A tax deduction is a reduction in one's taxable income. It results in less of your income being taxable, which causes a lower tax liability.
This should not be confused with a tax credit, which is simply a reduction in somebody's tax bill. A tax credit will usually reduce your tax liability far more than a tax deduction of the same amount.
Many expenses in Pinson are tax-deductible, such as interest paid on mortgages, charitable donations, the price of tax advice, and union dues, among others.
If your state has an income tax, some or all of these expenses might be deductible from your state income tax. The exact nature and extent of any deductions will depend on the laws of Alabama.
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How Can A Pinson, Alabama Tax Attorney Help?
Income tax law can get fairly complex in Pinson, Alabama. If you have any questions about your income tax liability, you should not hesitate to speak with a tax attorney sooner, rather than later.