The income tax in Schuylkill Haven, 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.
Everyone in the U.S. is subject to the federal income tax. But you are only subject to the income tax of the state in which you live. Some states have no income tax at all. You should speak with an accountant or tax Lawyer in Schuylkill Haven, Pennsylvania if you don't know what the tax system is here.
Income Tax Deductions in Schuylkill Haven, 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.
There is also something called a tax credit, which is treated as a partial payment of the income tax. A tax credit almost always results in a reduced tax bill than a reduction of the same amount.
Many common expenses in Schuylkill Haven can be deducted from your taxable income. They include mortgage interest, charitable contributions (if property documented, of course), the price of tax advice, union dues, and many others.
How Can A Schuylkill Haven, Pennsylvania Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in Schuylkill Haven, 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.