The income tax in Chickasha, Oklahoma is a tax imposed on all money earned and received during the year. Under federal law, income through 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 Oklahoma, were allowed to impose income taxes as they saw fit.

While the federal government levies an income tax against every person and corporation in the U.S., the income taxes imposed by the states vary widely. Some states have fairly high income taxes, and a few have none at all. You should consult with a Chickasha, Oklahoma tax lawyer if you don't know what type of tax system your state has.

Income Tax Deductions in Chickasha, Oklahoma

A tax deduction is an expense which, in whole or in part, is subtracted from a person's taxable income. For example, if you make ,000 in a year, and the tax rate is 10%, a reduction of ,000 results in only ,000 being taxed. This means that you will pay ,900 instead of ,000.

This should not be conflated with a tax credit, which is a reduction in your tax bill. A tax credit typically results in a greater reduction in tax liability than a reduction in the same amount.

Many expenses in Chickasha are tax-deductible, such as interest paid on mortgages, charitable contributions, the cost of tax advice, and union dues, among others.

How Can A Chickasha, Oklahoma Tax Attorney Help?

Income tax laws are notoriously complex. If you reside in Chickasha, Oklahoma and run into any type of tax problems, including an audit or wage garnishment, a local tax lawyer would almost certainly be able to help.