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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