Income Tax Lawyers in West Memphis, Arkansas
In West Memphis, Arkansas, 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 Arkansas were allowed to impose income taxes of their own.
The federal income tax must be paid by everyone in the U.S. However, you must only pay the state income tax of the state you live in. You should talk with a financial adviser or tax lawyer in West Memphis, Arkansas if you are not clear about what your state and federal tax liability.
There are many rumors floating about which claim that you don't truly 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 West Memphis, Arkansas, you will face criminal charges.
Income Tax Deductions in West Memphis, Arkansas
A tax deduction is simply a reduction in the part of a person's income that is taxable. For example, if someone makes $50,000 per year, and gets a $1,000 tax deduction, their taxable income is $49,000.
This should not be confused with a tax credit, which is simply a reduction in somebody's tax bill. A tax credit will typically reduce your tax liability far more than a tax reduction of the same amount.
Many common expenses in West Memphis 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 you reside in a state that has an income tax, some of these expenses may also be deductible, though that depends on the specific tax laws of Arkansas.
Find a West Memphis Lawyer that Specializes in Your Area of Need:
How Can A West Memphis, Arkansas Tax Attorney Help?
Income tax law can get fairly complex in West Memphis, Arkansas. If you have any questions about your income tax liability, you should not hesitate to speak with a tax lawyer sooner, rather than later.