In Sherborn, 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 Sherborn, Massachusetts tax lawyer or accountant to find out if your state is one of them.
Income Tax Deductions in Sherborn, Massachusetts
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 conflated with a tax credit, which is a reduction in your tax bill. A tax credit usually results in a greater reduction in tax liability than a reduction in the same amount.
Under federal law, numerous expenses in Sherborn are tax-deductible, including interest paid on a mortgage, charitable donations, the price of tax advice, and union or professional dues, among many others.
How Can A Sherborn, Massachusetts Tax Attorney Help?
Income tax laws in Sherborn, Massachusetts can get very complex. You should speak with an accountant or tax attorney if you have any questions about your income tax liability.