Income Tax Lawyers in Selma, Alabama
In Selma, Alabama, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Usually, 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 Selma, 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 Selma, Alabama, you will face criminal charges.
Income Tax Deductions in Selma, 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 Selma 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 has an income tax, some or all of these expenses may be deductible from your state income tax. The exact nature and extent of any deductions will depend on the laws of Alabama.
Find a Selma Lawyer that Specializes in Your Area of Need:
How Can A Selma, Alabama Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in Selma, 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.