In Tupelo, 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 Tupelo, Mississippi if you aren't clear about what system your state has.

Income Tax Deductions in Tupelo, Mississippi

A tax deduction is a reduction in one's taxable income. For example, if a person makes ,000 per year, and receives a ,000 tax deduction, they will only have to pay taxes on the remaining ,000.

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

Under federal law, numerous expenses in Tupelo 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 Tupelo, Mississippi Tax Attorney Help?

Income tax law can get fairly complex in Tupelo, 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.