The income tax in Madison, Wisconsin is a tax imposed on all of the income earned or received by a person or corporation during a certain year. Under federal law, almost any type of income may be taxed. The federal government has the authority to impose an income tax thanks to the 16th Amendment to the U.S. Constitution, enacted in 1916 after the Supreme Court had, on more than one occasion, found a federal income tax to be unconstitutional. Of course, before and after the creation of the federal income tax, states, including Wisconsin were allowed to impose income taxes of their own.
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 Madison, Wisconsin tax lawyer or accountant to find out if your state is one of them.
Income Tax Deductions in Madison, Wisconsin
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.
Don't confuse a tax deduction with a tax credit. A tax credit simply lowers your tax bill by the amount of the credit. A tax credit typically reduces your tax bill more than a reduction of the same amount.
Under federal law, numerous expenses in Madison 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 Madison, Wisconsin Tax Attorney Help?
Income tax law can get fairly complex in Madison, Wisconsin. If you have any questions about your income tax liability, you should not hesitate to speak with a tax lawyer sooner, rather than later.