In Floral Park, New York, 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 has had the constitutional authority 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 York.
The federal income tax must be paid by everyone 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 Lawyer in Floral Park, New York if you are not clear about what your state and federal tax liability.
Income Tax Deductions in Floral Park, New York
A tax deduction is a reduction in your taxable income. It results in less of one's income being taxable, which causes a reduced 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 reduction of the same amount.
Under federal law, numerous expenses in Floral Park 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 Floral Park, New York Tax Attorney Help?
Income tax law can get fairly complex in Floral Park, New York. If you have any questions about your income tax liability, you should not hesitate to speak with a tax Lawyer sooner, rather than later.