The income tax in Lexington, South Carolina 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 had explicit constitutional power to impose an income tax since 1916, with the passage of the 16th Amendment. This came after the Supreme Court had repeatedly found a federal income tax to be unconstitutional. States, including South Carolina, have always been free to impose whatever type of income tax they liked.

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 Lexington, South Carolina tax attorney or accountant to find out if your state is one of them.

Income Tax Deductions in Lexington, South Carolina

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

How Can A Lexington, South Carolina Tax Attorney Help?

Income tax laws in Lexington, South Carolina can get fairly complex. You should speak with an accountant or tax lawyer if you have any questions about your income tax liability.