Income Tax Lawyers in Chino Valley, Arizona
In Chino Valley, Arizona, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Typically, 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 Arizona 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 Chino Valley, Arizona 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 really 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 Chino Valley, Arizona, you will face criminal charges.
Income Tax Deductions in Chino Valley, Arizona
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 normally reduce your tax liability far more than a tax reduction of the same amount.
Many common expenses in Chino Valley 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 individual tax laws of Arizona.
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How Can A Chino Valley, Arizona Tax Attorney Help?
Income tax law can get fairly complex in Chino Valley, Arizona. If you have any questions about your income tax liability, you should not hesitate to speak with a tax lawyer sooner, rather than later.