Income Tax Lawyers in San Luis, Arizona
In San Luis, Arizona, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Generally, 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 Arizona were free to impose income taxes of their own.
The federal income tax must be paid by everybody 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 attorney in San Luis, Arizona if you are not clear about what your state and federal tax liability.
You might have heard rumors claiming that you don't actually have to pay your federal income tax. These rumors are false. "Tax protesters" rely on bizarre and discredited legal arguments in their claims that the federal income tax is somehow illegal. None of these arguments have ever been successful in U.S. Courts, and deliberately failing to pay your income tax in San Luis, Arizona is a good way to end up in federal prison.
Income Tax Deductions in San Luis, Arizona
A tax deduction is simply a reduction in the portion of a person's income which is taxable. For example, if someone makes $50,000 per year, and gets a $1,000 tax deduction, their taxable income is $49,000.
Don't confuse a tax deduction with a tax credit. A tax credit simply reduces your tax bill by the amount of the credit. A tax credit usually reduces your tax bill more than a deduction of the same amount.
Many common expenses in San Luis can be deducted from your taxable income. They include mortgage interest, charitable donations (if property documented, of course), the cost of tax advice, union dues, and many others.
If you live in a state that has an income tax, some of these expenses might also be deductible, though that depends on the particular tax laws of Arizona.
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How Can A San Luis, Arizona 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 San Luis, Arizona tax attorney to avoid the consequences of under-paying, and to prevent you from over-paying.