Income Tax Lawyers in Pomona, California
In Pomona, 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.
Everybody 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 Pomona, 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 Pomona, California, or anywhere else, you will be prosecuted.
Income Tax Deductions in Pomona, 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.
Don't confuse a tax deduction with a tax credit. A tax credit simply reduces your tax bill by the amount of the credit. A tax credit normally reduces your tax bill more than a deduction of the same amount.
Many expenses in Pomona are tax-deductible, such as interest paid on mortgages, charitable donations, the price of tax advice, and union dues, among 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
Find a Pomona Lawyer that Specializes in Your Area of Need:
How Can A Pomona, California Tax Attorney Help?
Income tax laws in Pomona, California can get fairly complex. You should speak with an accountant or tax lawyer if you have any questions about your income tax liability.