The income tax in Mahanoy City, 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 Mahanoy City, Pennsylvania tax lawyer or accountant to find out if your state is one of them.

Income Tax Deductions in Mahanoy City, 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.

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 reduced tax burden than a tax reduction of the same amount.

Many common expenses in Mahanoy City can be deducted, in whole or in part, from your taxable income. Federal tax deductions include charitable contributions, union dues, interest paid on a mortgage, and state and local taxes.

How Can A Mahanoy City, Pennsylvania Tax Attorney Help?

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