Income Tax Lawyers in Pleasanton, California
In Pleasanton, California, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Typically, 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.
Everyone in the United States must pay the federal income tax. However, you only have to pay the state income tax of the state in which you reside. You should speak with an accountant or tax lawyer in Pleasanton, California if you aren't clear about what system your state has.
For years, rumors have flown around that the federal income tax is unconstitutional, or that the tax code doesn't really require a person to pay taxes. This is simply untrue. Some people have fought the constitutionality of their income tax, based on radical interpretations of the constitution, and none of them have succeeded. You will likely not be the first. If you fail to pay your federal income tax in Pleasanton, California, or anywhere else, you will be prosecuted.
Income Tax Deductions in Pleasanton, California
A tax deduction is simply a reduction in the part of a person's income that is taxable. For example, if someone makes $50,000 per year, and gets a $1,000 tax deduction, their taxable income is $49,000.
Don't confuse a tax deduction with a tax credit. A tax credit simply lowers your tax bill by the amount of the credit. A tax credit normally reduces your tax bill more than a reduction of the same amount.
Many expenses in Pleasanton are tax-deductible, such as interest paid on mortgages, charitable contributions, the cost of tax advice, and union dues, among others.
If you reside in a state that has an income tax, some of these expenses may also be deductible, though that depends on the individual tax laws of California.
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How Can A Pleasanton, California Tax Attorney Help?
Income tax laws can get very complex. If you are in Pleasanton, 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.