Income Tax Lawyers in Greenfield, California
In Greenfield, 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 Greenfield, 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 Greenfield, California is a good way to end up in federal prison.
Income Tax Deductions in Greenfield, 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 reduction 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 conflated with a tax credit, which is a reduction in your tax bill. A tax credit usually results in a greater reduction in tax liability than a reduction in the same amount.
Under federal law, numerous expenses in Greenfield are tax-deductible, including interest paid on a mortgage, charitable donations, the price of tax advice, and union or professional dues, among many 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 California.
Find a Greenfield Lawyer that Specializes in Your Area of Need:
How Can A Greenfield, California Tax Attorney Help?
Income tax laws can get very complex. If you are in Greenfield, California and have any questions about your taxes, you should consult with an accountant or local tax lawyer to avoid tax problems, such as audit or wage garnishment.