In Ripley, Mississippi, 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 Mississippi, were allowed to impose income taxes as 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 Ripley, Mississippi if you aren't clear about what system your state has.

Income Tax Deductions in Ripley, Mississippi

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 typically results in a greater reduction in tax liability than a reduction in the same amount.

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

How Can A Ripley, Mississippi Tax Attorney Help?

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