Income Tax Lawyers in Huntington Park, California
In Huntington Park, 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 Huntington Park, California tax attorney if you don't know what type of tax system your state has.
For years, rumors have circulated that the federal income tax is illegal or unconstitutional. These rumors are false: the federal government has explicit constitutional authority to tax income under the 16th Amendment. Still, "tax protesters" employ some fringe constitutional arguments, none of which have been successful. In Huntington Park, California, failing to pay your income tax can, and likely will, result in criminal prosecution.
Income Tax Deductions in Huntington Park, California
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.
This should not be conflated with a tax credit, which is a reduction in one's tax bill. A tax credit normally results in a greater reduction in tax liability than a deduction in the same amount.
Lots of expenses that are common in Huntington Park are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
If your state imposes an income tax, some or all of these expenses might be deductible, as well. However, this will depend on the law of California
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How Can A Huntington Park, California Tax Attorney Help?
Income tax laws are notoriously complex. If you live in Huntington Park, California and run into any type of tax problems, including an audit or wage garnishment, a local tax attorney would almost certainly be able to help.