In Bellefontaine Neighbors, Missouri, 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 the constitutional authority to tax income thanks to the 16th Amendment, which was enacted in 1916. Before that time, the U.S. Supreme Court had consistently declared the federal income tax unconstitutional, but individual states, including Missouri were allowed to impose an income tax if they saw fit.

Everyone 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 Bellefontaine Neighbors, Missouri if you aren't clear about what system your state has.

Income Tax Deductions in Bellefontaine Neighbors, Missouri

A tax deduction is an expense which, in whole or in part, is subtracted from a person's taxable income. For example, if you make ,000 in a year, and the tax rate is 10%, a reduction of ,000 results in only ,000 being taxed. This means that you will pay ,900 instead of ,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.

Many expenses in Bellefontaine Neighbors are tax-deductible, such as interest paid on mortgages, charitable contributions, the cost of tax advice, and union dues, among others.

How Can A Bellefontaine Neighbors, Missouri Tax Attorney Help?

Income tax law can get fairly complex in Bellefontaine Neighbors, Missouri. If you have any questions about your income tax liability, you should not hesitate to speak with a tax lawyer sooner, rather than later.