The income tax in Mckees Rocks, 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 Mckees Rocks, Pennsylvania tax lawyer or accountant to find out if your state is one of them.
Income Tax Deductions in Mckees Rocks, 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 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 Mckees Rocks are tax deductible. Federal tax deductions include mortgage interest, union dues, interest paid on mortgages, and others.
How Can A Mckees Rocks, Pennsylvania Tax Attorney Help?
Income tax law can get fairly complex in Mckees Rocks, 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.