In Chatsworth, Georgia, 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 Georgia.
The federal income tax must be paid by everyone in the U.S. However, you must only pay the state income tax of the state you live in. You should talk with a financial adviser or tax lawyer in Chatsworth, Georgia if you are not clear about what your state and federal tax liability.
Income Tax Deductions in Chatsworth, Georgia
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.
There is also something called a tax credit, which is treated as a partial payment of the income tax. A tax credit almost always results in a reduced tax bill than a reduction of the same amount.
Lots of expenses that are common in Chatsworth are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
How Can A Chatsworth, Georgia Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in Chatsworth, Georgia 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.