In Ladue, Missouri, the income tax is a tax imposed on money received (income) during a given set time period. Under federal law, and the laws of most states, income from any source may be taxed. The federal government imposes an income tax on all persons and entities present in the United States. The authority to tax incomes was granted to the federal government in 1913 with the ratification of the 16th Amendment to the Constitution. Before that time, the Supreme Court had found a federal income tax unconstitutional, prompting the passage of the amendment. Of course, individual states, including Missouri, were allowed to impose income taxes as they saw fit.

While the federal government levies an income tax against every person and corporation in the U.S., the income taxes imposed by the states vary widely. Some states have fairly high income taxes, and a few have none at all. You should consult with a Ladue, Missouri tax lawyer if you don't know what type of tax system your state has.

Income Tax Deductions in Ladue, Missouri

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 conflated with a tax credit, which is a reduction in your tax bill. A tax credit normally results in a greater reduction in tax liability than a reduction in the same amount.

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

How Can A Ladue, Missouri Tax Attorney Help?

Income tax laws are notoriously complex. If you reside in Ladue, Missouri and run into any type of tax problems, including an audit or wage garnishment, a local tax lawyer would almost certainly be able to help.