Income Tax Lawyers in Garden Grove, California
In Garden Grove, California, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Typically, income from all sources can be taxed. The federal government has had explicit constitutional power to impose an income tax since 1916, with the passage of the 16th Amendment. This came after the Supreme Court had repeatedly found a federal income tax to be unconstitutional. States, including California, have always been free 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 relatively high income taxes, and a few have none at all. You should consult with a Garden Grove, California tax attorney if you don't know what type of tax system your state has.
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 Garden Grove, California is a good way to end up in federal prison.
Income Tax Deductions in Garden Grove, California
A tax deduction is an expense which, in whole or in part, is subtracted from a person's taxable income. For example, if you make $50,000 in a year, and the tax rate is 10%, a deduction of $1,000 results in only $49,000 being taxed. This means that you will pay $4,900 instead of $5,000.
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 lower tax burden than a tax deduction of the same amount.
Many common expenses in Garden Grove can be deducted, in whole or in part, from your taxable income. Federal tax deductions include charitable donations, union dues, interest paid on a mortgage, and state and local taxes.
If your state has an income tax, some or all of these expenses might be deductible from your state income tax. The exact nature and extent of any deductions will depend on the laws of California.
Find a Garden Grove Lawyer that Specializes in Your Area of Need:
How Can A Garden Grove, California Tax Attorney Help?
Income tax laws can get pretty complex. If you are in Garden Grove, California and have any questions about your taxes, you should consult with an accountant or local tax attorney to avoid tax problems, such as audit or wage garnishment.
Income Tax Attorneys in the Largest CA Cities
Life in Garden GroveGarden Grove is located near the beautiful area of Orange County, California. Garden Grove is a quaint city of approximately 170,883 and is known for being home to Robert H. Schuller's Crystal Cathedral.
The city primarily strives from the hotel industry and retail locations of all types. The area also has offices for Air Industries Corp., Driessen Aircraft Interior Systems, GKN Aerospace Transparency Systems, and Mircrosemi Integrated Products. For all legal inquiries, residents of Garden Grove look to Orange County. Orange County is home to a few law schools, as well as large, mid-size, and small firms offering legal services in all legal practice areas.
Attractions in Garden Grove include the Crystal Cathedral referred to above, and the Atlantis Play Center, a great spot for families. Other popular attractions are located nearby in Orange County and include Disneyland, California Adventures, Downtown Disney, Long Beach, Newport Beach, and Huntington Beach. All in all, Garden Grove is a small city in a beautiful area that offers its residents a wonder quality of life.