Tax deduction is a reduction of income that is able to be taxed and is commonly a result of expenses, particularly those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and tax credits. The difference between deductions, exemptions, and credits is that deductions and exemptions both reduce taxable income, while credits reduce tax. Wikipedia

How Credits and Deductions Work

It’s important to determine your eligibility for tax deductions and tax credits before you file. Deductions can reduce the amount of your income before you calculate the tax you owe. Credits can reduce the amount of tax you owe or increase your tax refund. Certain credits may give you a refund even if you don’t owe any tax.

Credits for Individuals

Family and Dependent Credits

Income and Savings Credits

Homeowner Credits

Electric Vehicle Credits

Health Care Credits

Deductions for Individuals

Work Related Deductions

Itemized Deductions

Education Deductions

Health Care Deductions

Investment Related Deductions

Business Credits and Deductions

Popular Tax Deductions

Standard Deduction

IRA contributions deduction

Health savings account (HSA) deduction

State and local taxes deduction

Medical expenses deduction

Home office deduction

Student loan interest deduction

Mortgage interest deduction

Charitable contributions tax deduction

Educators expense deduction

What deductions can I take on my taxes?

Business expenses.
Student loan interest.
Traditional IRA contributions.
HSA contributions.
Charitable contributions.
Medical expenses more than 10% of your AGI.
Mortgage interest.

What are the 4 most common tax deductions?

Retirement Contributions.
Charitable Donations.
Mortgage Interest Deduction.
Interest on College Education Costs.
Self-Employment Expenses.

What are the 5 different tax deductions?

Personal Exemption.
Standard Deduction.
Charitable Contributions.
Mortgage Interest.
Tax-Advantaged Account Contributions.

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