In Mount Airy, Maryland, 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 Maryland.
Everyone in the U.S. is subject to the federal income tax. But you are only subject to the income tax of the state in which you live. Some states have no income tax at all. You should speak with an accountant or tax lawyer in Mount Airy, Maryland if you don't know what the tax system is here.
Income Tax Deductions in Mount Airy, Maryland
A tax deduction is simply a reduction in the part of a person's income that 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 confused with a tax credit, which is simply a reduction in somebody's tax bill. A tax credit will typically reduce your tax liability far more than a tax reduction of the same amount.
Lots of expenses that are common in Mount Airy are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
How Can A Mount Airy, Maryland Tax Attorney Help?
Income tax law can get fairly complex in Mount Airy, Maryland. If you have any questions about your income tax liability, you should not hesitate to speak with a tax lawyer sooner, rather than later.