In Elon College, North Carolina, the income tax is a tax imposed on money received (income) during a certain set time period. Under federal law, and the laws of most states, income from any source can be taxed. The federal government imposes an income tax on all persons and entities present in the United States. The power 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 North Carolina, were free to impose income taxes as they saw fit.

The federal income tax must be paid by everybody in the U.S. However, you must only pay the state income tax of the state you live in. You should talk with a financial adviser or tax Attorney in Elon College, North Carolina if you are not clear about what your state and federal tax liability.

Income Tax Deductions in Elon College, North Carolina

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 a reduction of a person's tax bill. A tax credit almost always results in a lower tax burden than a tax deduction of the same amount.

Many expenses in Elon College are tax-deductible, such as interest paid on mortgages, charitable donations, the price of tax advice, and union dues, among others.

How Can A Elon College, North Carolina Tax Attorney Help?

Income tax laws in Elon College, North Carolina can get fairly complex. You should speak with an accountant or tax Lawyer if you have any questions about your income tax liability.