In Deerfield, Illinois, 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 the constitutional authority to tax income thanks to the 16th Amendment, which was enacted in 1916. Before that time, the U.S. Supreme Court had consistently declared the federal income tax unconstitutional, but individual states, including Illinois were allowed to impose an income tax if they saw fit.
Everyone 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 Deerfield, Illinois if you aren't clear about what system your state has.
Income Tax Deductions in Deerfield, Illinois
A tax deduction is a reduction in one's taxable income. For example, if a person makes ,000 per year, and receives a ,000 tax deduction, they will only have to pay taxes on the remaining ,000.
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.
Many common expenses in Deerfield can be deducted from your taxable income. They include mortgage interest, charitable contributions (if property documented, of course), the price of tax advice, union dues, and many others.
How Can A Deerfield, Illinois Tax Attorney Help?
Income tax law can get fairly complex in Deerfield, Illinois. If you have any questions about your income tax liability, you should not hesitate to speak with a tax lawyer sooner, rather than later.