Income Tax Lawyers in Kerman, California
In Kerman, California, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Usually, 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 Kerman, 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 Kerman, California, failing to pay your income tax can, and likely will, result in criminal prosecution.
Income Tax Deductions in Kerman, California
A tax deduction is a reduction in one's taxable income. It results in less of your income being taxable, which causes a lower tax liability.
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 Kerman 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, it likely has many of the same deductions, though they could vary widely. This will depend on the specific laws of California.
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How Can A Kerman, California Tax Attorney Help?
Income tax laws in Kerman, California can get fairly complex. You should speak with an accountant or tax lawyer if you have any questions about your income tax liability.