Income Tax Lawyers in Elk Grove, California
In Elk Grove, California, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Generally, income from all sources may be taxed. The federal government has had explicit constitutional authority to impose an income tax since 1916, with the passage of the 16th Amendment. This came after the Supreme Court had consistently found a federal income tax to be unconstitutional. States, including California, have always been allowed to impose whatever type of income tax they liked.
While the federal government levies an income tax against every person and corporation in the U.S., the income taxes imposed by the states vary widely. Some states have fairly high income taxes, and a few have none at all. You should consult with a Elk Grove, California tax lawyer if you don't know what type of tax system your state has.
You might have heard rumors claiming that you don't really 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 refusing to pay your income tax in Elk Grove, California is a good way to end up in federal prison.
Income Tax Deductions in Elk Grove, California
A tax deduction is a reduction in your taxable income. It results in less of one's income being taxable, which causes a reduced tax liability.
There is also something called a tax credit, which is treated as a partial payment of the income tax. A tax credit almost always results in a reduced tax bill than a reduction of the same amount.
Many common expenses in Elk Grove can be deducted, in whole or in part, from your taxable income. Federal tax deductions include charitable contributions, union dues, interest paid on a mortgage, and state and local taxes.
If you reside in a state that has an income tax, some of these expenses may also be deductible, though that depends on the particular tax laws of California.
Find a Elk Grove Lawyer that Specializes in Your Area of Need:
How Can A Elk Grove, California Tax Attorney Help?
Income tax laws in Elk Grove, California can get very complex. You should speak with an accountant or tax attorney if you have any questions about your income tax liability.