In New Smyrna Beach, Florida, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Generally, 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.
Everyone in the U.S. is subject to the federal income tax. But you are only subject to the income tax of the state in which you live. Some states have no income tax at all. You should speak with an accountant or tax Lawyer in New Smyrna Beach, Florida if you don't know what the tax system is here.
Income Tax Deductions in New Smyrna Beach, Florida
A tax deduction is simply a reduction in the part of a person's income that is taxable. For example, if someone makes ,000 per year, and gets a ,000 tax deduction, their taxable income is ,000.
This should not be conflated with a tax credit, which is a reduction in your tax bill. A tax credit usually results in a greater reduction in tax liability than a reduction in the same amount.
Lots of expenses that are common in New Smyrna Beach are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
How Can A New Smyrna Beach, Florida Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in New Smyrna 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.