In Waltham, Massachusetts, 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 the constitutional power 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 everybody 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 Waltham, Massachusetts tax Attorney or accountant to find out if your state is one of them.
Income Tax Deductions in Waltham, Massachusetts
A tax deduction is a reduction in one's taxable income. It results in less of your income being taxable, which causes a lower tax liability.
There is also something called a tax credit, which is treated as a partial payment of the income tax. A tax credit almost always results in a lower tax bill than a deduction of the same amount.
Under federal law, many expenses in Waltham are tax-deductible, including interest paid on a mortgage, charitable contributions, the cost of tax advice, and union or professional dues, among many others.
How Can A Waltham, Massachusetts Tax Attorney Help?
Income tax law can get fairly complex in Waltham, Massachusetts. If you have any questions about your income tax liability, you should not hesitate to speak with a tax Attorney sooner, rather than later.