Income Tax Lawyers in Reedley, California
In Reedley, 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 Reedley, 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 Reedley, California, or anywhere else, you will be prosecuted.
Income Tax Deductions in Reedley, 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 simply a reduction in somebody's tax bill. A tax credit will normally reduce your tax liability far more than a tax deduction of the same amount.
Under federal law, many expenses in Reedley are tax-deductible, including interest paid on a mortgage, charitable contributions, the cost of tax advice, and union or professional dues, among many others.
If your state has an income tax, some or all of these expenses might be deductible from your state income tax. The exact nature and extent of any deductions will depend on the laws of California.
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How Can A Reedley, California Tax Attorney Help?
Income tax law can get fairly complex in Reedley, California. If you have any questions about your income tax liability, you should not hesitate to speak with a tax attorney sooner, rather than later.