The income tax in Kennett Square, 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 has the authority to impose an income tax thanks to the 16th Amendment to the U.S. Constitution, enacted in 1916 after the Supreme Court had, on more than one occasion, found a federal income tax to be unconstitutional. Of course, before and after the creation of the federal income tax, states, including Pennsylvania were allowed to impose income taxes of their own.

While the federal income tax applies to everyone 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 Kennett Square, Pennsylvania tax lawyer or accountant to find out if your state is one of them.

Income Tax Deductions in Kennett Square, Pennsylvania

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.

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

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

How Can A Kennett Square, Pennsylvania Tax Attorney Help?

Income tax laws are notoriously complex. If you reside in Kennett Square, Pennsylvania 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.