In Denham Springs, Louisiana, income tax is imposed on most sources of income that a person receives in a given year. Under federal, state, and most local laws income from all sources can be taxed. The federal government has had explicit constitutional power to impose an income tax since 1916, with the passage of the 16th Amendment. This came after the Supreme Court had repeatedly found a federal income tax to be unconstitutional. States, including Louisiana, have always been free to impose whatever type of income tax they liked.
The federal income tax must be paid by everybody 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 Attorney in Denham Springs, Louisiana if you are not clear about what your state and federal tax liability.
Income Tax Deductions in Denham Springs, Louisiana
A tax deduction is simply a reduction in the portion of a person's income which 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 one's tax bill. A tax credit typically results in a greater reduction in tax liability than a deduction in the same amount.
Lots of expenses that are common in Denham Springs are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
How Can A Denham Springs, Louisiana Tax Attorney Help?
Income tax law can get fairly complex in Denham Springs, Louisiana. If you have any questions about your income tax liability, you should not hesitate to speak with a tax Attorney sooner, rather than later.