Tax Deductions are available to help every tax filer. Depending on the deduction they are taken at different points in the tax return.
- Many tax filers use tax deductions that are called adjustments and reduce taxable income on page 1 of a standard 1040 tax form. In this case, the tax deductions are subtracted from your total taxable income to get your Adjusted Gross Income (AGI). Reducing your AGI is in your best interest because that is what your tax will be calculated on.
- Other tax deductions can be taken on on Schedule A which reduces taxable income after Adjusted Gross Income (AGI).
- If you are a small business you may be able to take still other deductions from your business income on schedule C or within another entity such as an LLC or Corporation.
Deductions are the key to reducing your taxable income. They’re easy to overlook – you won’t get a notice in the mail about any of them – but deductions will help reduce the amount of money that you will need to pay in Federal taxes.
Personal Tax Deductions
Business Tax Deductions
If you travel for business whether for your own business or for your company, you need to be aware of theFederal Per Diem Rates to properly account for your tax deductions.