Income Tax Lawyers in Pleasant Grove, Alabama
In Pleasant Grove, Alabama, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Typically, 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 Pleasant Grove, 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 Pleasant Grove, Alabama, you will face criminal charges.
Income Tax Deductions in Pleasant Grove, 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 normally reduce your tax liability far more than a tax deduction of the same amount.
Lots of expenses that are common in Pleasant Grove are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
If your state has an income tax, some of these expenses might be deductible from your state taxes, as well, but that depends on the law of Alabama.
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How Can A Pleasant Grove, Alabama Tax Attorney Help?
Income tax laws are notoriously complex. If you live in Pleasant Grove, Alabama and run into any type of tax problems, including an audit or wage garnishment, a local tax attorney would almost certainly be able to help.