In New Gloucester, Maine, 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 Maine.
The federal income tax must be paid by everyone 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 lawyer in New Gloucester, Maine if you are not clear about what your state and federal tax liability.
Income Tax Deductions in New Gloucester, Maine
A tax deduction is a reduction in your taxable income. It results in less of one's income being taxable, which causes a reduced 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 reduced tax bill than a reduction of the same amount.
Under federal law, numerous expenses in New Gloucester 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 New Gloucester, Maine Tax Attorney Help?
Income tax law can get fairly complex in New Gloucester, Maine. If you have any questions about your income tax liability, you should not hesitate to speak with a tax lawyer sooner, rather than later.