Income Tax Lawyers in Bentonville, Arkansas
In Bentonville, Arkansas, 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 Arkansas 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 Bentonville, Arkansas if you aren't clear about what system your state has.
There are many rumors floating about which claim that you don't actually have to pay a federal income tax. These "tax protestors" rely on the false notion that the income tax is unconstitutional, or otherwise invalid. This is based on some fairly bizarre interpretations of the constitution and tax code, and suffice it to say, none of them have had much legal success. You should know that if you don't pay your federal taxes in Bentonville, Arkansas, you will face criminal charges.
Income Tax Deductions in Bentonville, Arkansas
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 simply a reduction in somebody's tax bill. A tax credit will usually reduce your tax liability far more than a tax reduction of the same amount.
Lots of expenses that are common in Bentonville are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
If you reside in a state that has an income tax, some of these expenses may also be deductible, though that depends on the particular tax laws of Arkansas.
Find a Bentonville Lawyer that Specializes in Your Area of Need:
How Can A Bentonville, Arkansas Tax Attorney Help?
Income tax laws can get very complex. If you are in Bentonville, Arkansas and have any questions about your taxes, you should consult with an accountant or local tax lawyer to avoid tax problems, such as audit or wage garnishment.