In Abbeville, Louisiana, income tax is imposed on most sources of income that a person receives in a certain year. Under federal, state, and most local laws income from all sources may be taxed. The federal government has had explicit constitutional authority to impose an income tax since 1916, with the passage of the 16th Amendment. This came after the Supreme Court had consistently found a federal income tax to be unconstitutional. States, including Louisiana, have always been allowed to impose whatever type of income tax they liked.
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 Abbeville, Louisiana if you are not clear about what your state and federal tax liability.
Income Tax Deductions in Abbeville, Louisiana
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 usually reduces your tax bill more than a reduction of the same amount.
Many expenses in Abbeville are tax-deductible, such as interest paid on mortgages, charitable contributions, the cost of tax advice, and union dues, among others.
How Can A Abbeville, Louisiana Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in Abbeville, Louisiana 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.