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State Income Tax is an EXTENSION of the Federal Income Tax: With that in mind...
The 16th amendment is a moot point. All it did was to confirm Congress' taxing power concerning income tax as an indirect tax!
Income Tax is an INDIRECT tax. It is NOT a direct tax as others here have suggested. 2 US Supreme Court Cases in 1916 settled this very question. They are:
BRUSHABER v. UNION PACIFIC R. CO., 240 U.S. 1 (1916)
AND
STANTON v. BALTIC MINING CO, 240 U.S. 103 (1916)
The Court said specifically in the Stanton case the following:
" it manifestly disregards the fact that by the previous ruling it was settled that the provisions of the 16th Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirecttaxation to which it inherently belonged, "
And as a side note, most tax professionals do NOT read the law to determine who is liable for the tax. Most tax professionals read IRS publications and just ASSUME anyone who makes money now owes an Income Tax.
IRS Publications are sort of like "New Letters" put out by the IRS to the tax industry, including mostly ALL CPA's and Tax "Professionals". The IRS has a manual available on their website which any one can go read. Here's what THEIR OWN manual says about their own publications:
4.10.7.2.8 (01-01-2006)
IRS Publications
"IRS Publications explain the law in plain language for taxpayers and their advisors. They typically highlight changes in the law, provide examples illustrating Service positions, and include worksheets. Publications are nonbinding on the Service and do not necessarily cover all positions for a given issue. While a good source of general information, publications should not be cited to sustain a position."
The IRS has plainly stated in their OWN manual that Publications are NOT to be cited to sustain positions about the LAW even though that is what all tax professionals do anyway. This is because IRS publications and pamphlets are NOT the law. The IRS has already vindicated themselves from people who WRONGLY use publications like law.
So hopefully this has gotten you on the proper path to actually understanding what the "Income Tax" actually is and especially what it ISN'T!
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Is there state income tax in Illinois?
There is a state income tax in Illinois.
When filing for the state income taxes do you receive your federal income tax refund as well as your state income tax refund?
No, when filing for the state income taxes, you will receive your federal income tax refund as well as your state income tax refund.
Are income tax payments deductible?
State income tax payments are deductible on your federal income tax return. (You may deduct state income tax or sales tax, but not both.) Federal income tax payments are deductible on your state tax return in a tiny number of states.
Do i need to file a Florida state income tax return?
Florida does not have an individual state income tax. They do have a corporate income tax.
If you live in a state that has income tax and work in a state that doesn't do you have to pay income tax?
it is residential
What is the state income tax of Texas?
Texas does not have a state income tax.
Is there state income tax in Illinois?
There is a state income tax in Illinois.
When filing for the state income taxes do you receive your federal income tax refund as well as your state income tax refund?
No, when filing for the state income taxes, you will receive your federal income tax refund as well as your state income tax refund.
Are income tax payments deductible?
State income tax payments are deductible on your federal income tax return. (You may deduct state income tax or sales tax, but not both.) Federal income tax payments are deductible on your state tax return in a tiny number of states.
If you live in a state that does not have a state income tax and work in a state that does have a state income tax are you obligated by law to pay state income tax to the other state?
Yes..only on that portion of income properly allocated or attributable to that State.
Do i need to file a Florida state income tax return?
Florida does not have an individual state income tax. They do have a corporate income tax.
Similarities between state income tax and federal income tax?
The taxable amounts of the income from each income tax return will be taxed at the tax rates for the state and for the federal.
Can you defer paying Alabama state income tax?
Maybe you can contact the Alabama state tax department and make some type of payment arrangement after you complete your income tax return correctly and have it ready to file.
Does South Dakota have a state income tax?
No, South Dakota does not have a state income tax.
When filing for the federal income tax return do you have to attach schedule a for the state income tax return?
No, when filing for the federal income tax return, you do not attach the Schedule A for the state income tax return.
If you live in a state that has income tax and work in a state that doesn't do you have to pay income tax?
it is residential
If you live in a state that does have a state income tax and work in a state that does not have a state income tax are you obligated by law to pay state income tax to your home state?
From personal experience, if you live in Oklahoma and your workplace is in a different state, you are obligated pay Oklahoma state income taxes on those wages. This is probably true for all other state income tax states.
