The income tax in Bryn Mawr, Pennsylvania 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 Pennsylvania, 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 Bryn Mawr, Pennsylvania if you are not clear about what your state and federal tax liability.
Income Tax Deductions in Bryn Mawr, Pennsylvania
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 confused with a tax credit, which is simply a reduction in somebody's tax bill. A tax credit will usually reduce your tax liability far more than a tax reduction of the same amount.
Lots of expenses that are common in Bryn Mawr are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
How Can A Bryn Mawr, Pennsylvania Tax Attorney Help?
Income tax law can get fairly complex in Bryn Mawr, Pennsylvania. If you have any questions about your income tax liability, you should not hesitate to speak with a tax Lawyer sooner, rather than later.