In Fort Walton Beach, Florida, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Usually, income from all sources may be taxed. The federal government has had the constitutional authority to impose an income tax since 1916, since the passage of the 16th Amendment. Before then, states could, and still can, impose whatever income tax they like, including in Florida.
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 fairly high income taxes, and a few have none at all. You should consult with a Fort Walton Beach, Florida tax Lawyer if you don't know what type of tax system your state has.
Income Tax Deductions in Fort Walton Beach, Florida
A tax deduction is a reduction in your taxable income. It results in less of one's income being taxable, which causes a reduced 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 reduced tax burden than a tax reduction of the same amount.
Lots of expenses that are common in Fort Walton Beach are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
How Can A Fort Walton Beach, Florida Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in Fort Walton Beach, Florida and run into any type of tax problems, including an audit or wage garnishment, a local tax Lawyer would almost certainly be able to help.