In Rye Brook, New York, 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 the constitutional power to tax income thanks to the 16th Amendment, which was enacted in 1916. Before that time, the U.S. Supreme Court had repeatedly declared the federal income tax unconstitutional, but individual states, including New York were free to impose an income tax if they saw fit.

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 Rye Brook, New York tax attorney or accountant to find out if your state is one of them.

Income Tax Deductions in Rye Brook, New York

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.

Don't confuse a tax deduction with a tax credit. A tax credit simply reduces your tax bill by the amount of the credit. A tax credit normally reduces your tax bill more than a deduction of the same amount.

Many common expenses in Rye Brook can be deducted, in whole or in part, from your taxable income. Federal tax deductions include charitable donations, union dues, interest paid on a mortgage, and state and local taxes.

How Can A Rye Brook, New York Tax Attorney Help?

Income tax laws are notoriously complex. If you live in Rye Brook, New York 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.