The income tax in Canton, South Dakota 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 Dakota, 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 Canton, South Dakota tax attorney or accountant to find out if your state is one of them.

Income Tax Deductions in Canton, South Dakota

A tax deduction is a reduction in your taxable income. For example, if a person makes ,000 per year, and receives a ,000 tax deduction, they will only have to pay taxes on the remaining ,000.

Don't confuse a tax deduction with a tax credit. A tax credit simply reduces your tax bill by the amount of the credit. A tax credit usually reduces your tax bill more than a deduction of the same amount.

Many common expenses in Canton can be deducted from your taxable income. They include mortgage interest, charitable donations (if property documented, of course), the cost of tax advice, union dues, and many others.

How Can A Canton, South Dakota Tax Attorney Help?

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