Income Tax Lawyers in Guadalupe, Arizona
In Guadalupe, Arizona, 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 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 Guadalupe, 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 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 Guadalupe, Arizona, you will face criminal charges.
Income Tax Deductions in Guadalupe, Arizona
A tax deduction is a reduction in the portion of a person's income that is taxable, resulting in a reduced tax liability. For example, suppose your income tax rate is 10%, and you had $50,000 in income last year. If you received a $1,000 tax deduction, your taxable income would be $49,000, and you would have to pay 10% on that. So, it would lower your tax liability from $5000 to $4900.
This should not be confused with a tax credit, which is a reduction of a person's tax bill. A tax credit almost always results in a reduced tax burden than a tax reduction of the same amount.
Lots of expenses that are common in Guadalupe are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
If one's state has an income tax, some of these expenses may be deductible from your state taxes, as well, but that depends on the law of Arizona.
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How Can A Guadalupe, Arizona Tax Attorney Help?
Income tax law can get fairly complex in Guadalupe, 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.