The income tax in Big Spring, Texas 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 Texas, have always been allowed to impose whatever type of income tax they liked.

The federal income tax must be paid by everyone in the U.S. However, you must only pay the state income tax of the state you live in. You should talk with a financial adviser or tax Lawyer in Big Spring, Texas if you are not clear about what your state and federal tax liability.

Income Tax Deductions in Big Spring, Texas

A tax deduction is a reduction in your taxable income. It results in less of one's income being taxable, which causes a reduced tax liability.

This should not be confused with a tax credit, which is simply a reduction in somebody's tax bill. A tax credit will typically reduce your tax liability far more than a tax reduction of the same amount.

Under federal law, numerous expenses in Big Spring are tax-deductible, including interest paid on a mortgage, charitable donations, the price of tax advice, and union or professional dues, among many others.

How Can A Big Spring, Texas Tax Attorney Help?

Income tax law can get fairly complex in Big Spring, Texas. If you have any questions about your income tax liability, you should not hesitate to speak with a tax Lawyer sooner, rather than later.