In Commerce, Georgia, an income tax is imposed on a certain percentage of the income of all individuals and businesses. Typically, 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 Commerce, Georgia if you are not clear about what your state and federal tax liability.
Income Tax Deductions in Commerce, 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.
Don't confuse a tax deduction with a tax credit. A tax credit simply lowers your tax bill by the amount of the credit. A tax credit normally reduces your tax bill more than a reduction of the same amount.
Many expenses in Commerce are tax-deductible, such as interest paid on mortgages, charitable contributions, the cost of tax advice, and union dues, among others.
How Can A Commerce, Georgia Tax Attorney Help?
Income tax law can get fairly complex in Commerce, Georgia. If you have any questions about your income tax liability, you should not hesitate to speak with a tax lawyer sooner, rather than later.