The income tax in Walterboro, 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 Walterboro, South Carolina tax Lawyer or accountant to find out if your state is one of them.
Income Tax Deductions in Walterboro, 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 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.
Many expenses in Walterboro are tax-deductible, such as interest paid on mortgages, charitable contributions, the cost of tax advice, and union dues, among others.
How Can A Walterboro, South Carolina Tax Attorney Help?
Income tax law can get fairly complex in Walterboro, South Carolina. If you have any questions about your income tax liability, you should not hesitate to speak with a tax Lawyer sooner, rather than later.