In Wildwood Crest, New Jersey, 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 has had the constitutional power to impose an income tax since 1916, since the passage of the 16th Amendment. Before then, states could, and still can, impose whatever income tax they like, including in New Jersey.
While the federal income tax applies to everybody in the United States, the income taxes imposed by individual states vary widely, and some states have no income tax at all. You should consult with a Wildwood Crest, New Jersey tax attorney or accountant to find out if your state is one of them.
Income Tax Deductions in Wildwood Crest, New Jersey
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 simply a reduction in somebody's tax bill. A tax credit will typically reduce your tax liability far more than a tax deduction of the same amount.
Lots of expenses that are common in Wildwood Crest are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
How Can A Wildwood Crest, New Jersey Tax Attorney Help?
Income tax laws are notoriously complex. If you live in Wildwood Crest, New Jersey and run into any type of tax problems, including an audit or wage garnishment, a local tax attorney would almost certainly be able to help.