In North Attleborough, Massachusetts, 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 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 Massachusetts.
While the federal income tax applies to everyone in the United States, the income taxes imposed by individual states vary widely, and some states have no income tax at all. You should consult with a North Attleborough, Massachusetts tax Lawyer or accountant to find out if your state is one of them.
Income Tax Deductions in North Attleborough, Massachusetts
A tax deduction is an expense which, in whole or in part, is subtracted from a person's taxable income. For example, if you make ,000 in a year, and the tax rate is 10%, a reduction of ,000 results in only ,000 being taxed. This means that you will pay ,900 instead of ,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 North Attleborough 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 North Attleborough, Massachusetts Tax Attorney Help?
Income tax law can get fairly complex in North Attleborough, Massachusetts. If you have any questions about your income tax liability, you should not hesitate to speak with a tax Lawyer sooner, rather than later.