What are the Different Tax Deductions?
Tax deductions, also known as tax-deductible expenses, or more commonly as tax write-offs, represent expenses accrued by a taxpayer as a result of producing income. Tax deductions are designed to offset the costs accrued by taxpayers in the course of making money. They appear on an individual’s income tax return as amounts that can be deducted, or subtracted, from an individual’s gross income. This reduces the overall taxable income, which in turn lowers the amount of tax a taxpayer is required to pay.
