The income tax in Tualatin, Oregon 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 Oregon, were allowed to impose income taxes as they saw fit.

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 Tualatin, Oregon if you are not clear about what your state and federal tax liability.

Income Tax Deductions in Tualatin, Oregon

A tax deduction is simply a reduction in the part of a person's income that is taxable. For example, if someone makes ,000 per year, and gets a ,000 tax deduction, their taxable income is ,000.

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

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

How Can A Tualatin, Oregon Tax Attorney Help?

Income tax laws in Tualatin, Oregon can get very complex. You should speak with an accountant or tax attorney if you have any questions about your income tax liability.