The income tax in Spartanburg, South Carolina 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 had explicit constitutional authority to impose an income tax since 1916, with the passage of the 16th Amendment. This came after the Supreme Court had consistently found a federal income tax to be unconstitutional. States, including South Carolina, have always been allowed to impose whatever type of income tax they liked.
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 Spartanburg, South Carolina tax Lawyer or accountant to find out if your state is one of them.
Income Tax Deductions in Spartanburg, South Carolina
A tax deduction is an expense which, in whole or in part, is subtracted from a person's taxable income. For example, if you make ,000 in a year, and the tax rate is 10%, a reduction of ,000 results in only ,000 being taxed. This means that you will pay ,900 instead of ,000.
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 Spartanburg 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 Spartanburg, South Carolina Tax Attorney Help?
Income tax laws are notoriously complex. If you reside in Spartanburg, South Carolina 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.