Income Tax Lawyers in Scottsboro, Alabama
In Scottsboro, Alabama, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Generally, 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 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 Scottsboro, 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 requirement to pay the federal income tax can be argued 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 Scottsboro, Alabama, you will face criminal charges.
Income Tax Deductions in Scottsboro, Alabama
A tax deduction is an expense which, in whole or in part, is subtracted from a person's taxable income. For example, if you make $50,000 in a year, and the tax rate is 10%, a reduction of $1,000 results in only $49,000 being taxed. This means that you will pay $4,900 instead of $5,000.
There is also something called a tax credit, which is treated as a partial payment of the income tax. A tax credit almost always results in a reduced tax bill than a reduction of the same amount.
Many common expenses in Scottsboro can be deducted from your taxable income. They include mortgage interest, charitable contributions (if property documented, of course), the price of tax advice, union dues, and many 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 Scottsboro, Alabama Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in Scottsboro, 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.