Income Tax Lawyers in Jacksonville, Arkansas
In Jacksonville, Arkansas, 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 Arkansas 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 Jacksonville, Arkansas if you aren't clear about what system your state has.
For years, rumors have circulated that the federal income tax is illegal or unconstitutional. These rumors are false: the federal government has explicit constitutional authority to tax income under the 16th Amendment. Still, "tax protesters" employ some fringe constitutional arguments, none of which have been successful. In Jacksonville, Arkansas, failing to pay your income tax can, and likely will, result in criminal prosecution.
Income Tax Deductions in Jacksonville, Arkansas
A tax deduction is a reduction in your 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 normally reduce your tax liability far more than a tax deduction of the same amount.
Lots of expenses that are common in Jacksonville are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
If your state has an income tax, it likely has many of the same deductions, though they could vary widely. This will depend on the individual laws of Arkansas.
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How Can A Jacksonville, Arkansas Tax Attorney Help?
Income tax laws can get quite complex, especially when large amounts of money from multiple sources are involved. It would not be a bad idea to call a Jacksonville, Arkansas tax attorney to avoid the consequences of under-paying, and to prevent you from over-paying.