In Roseville, Minnesota, 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 the constitutional power to tax income thanks to the 16th Amendment, which was enacted in 1916. Before that time, the U.S. Supreme Court had repeatedly declared the federal income tax unconstitutional, but individual states, including Minnesota were free to impose an income tax if they saw fit.

Everybody in the United States must pay the federal income tax. However, you only have to pay the state income tax of the state in which you reside. You should speak with an accountant or tax lawyer in Roseville, Minnesota if you aren't clear about what system your state has.

Income Tax Deductions in Roseville, Minnesota

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.

This should not be confused with a tax credit, which is simply a reduction in somebody's tax bill. A tax credit will normally reduce your tax liability far more than a tax deduction of the same amount.

Lots of expenses that are common in Roseville are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.

How Can A Roseville, Minnesota Tax Attorney Help?

Income tax laws can get pretty complex. If you are in Roseville, Minnesota and have any questions about your taxes, you should consult with an accountant or local tax attorney to avoid tax problems, such as audit or wage garnishment.