The income tax in Luzerne County, Pennsylvania is a tax imposed on all money earned and received during the year. Under federal law, income from any source can be taxed. The federal government has the power 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 free to impose income taxes of their own.
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 Luzerne County, Pennsylvania tax Attorney or accountant to find out if your state is one of them.
Income Tax Deductions in Luzerne County, Pennsylvania
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.
This should not be confused with a tax credit, which is a reduction of a person's tax bill. A tax credit almost always results in a lower tax burden than a tax deduction of the same amount.
Many expenses in Luzerne County are tax-deductible, such as interest paid on mortgages, charitable donations, the price of tax advice, and union dues, among others.
How Can A Luzerne County, Pennsylvania Tax Attorney Help?
Income tax laws are notoriously complex. If you live in Luzerne County, Pennsylvania 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.