RefundtalkTax credits and tax deductions are two different types of tax breaks. Both can lower your tax bill, but they work in different ways. What is a tax deduction? A tax deduction is an expense that you can subtract from your yearly income. Deductions are taken before you calculate how much of your income is taxable. That means you should subtract any tax…
Category Archives: Tax Deductions
Commonly Overlooked Tax Deductions
Taxpayers know that there are tax deductions out there to be utilized to reduce the taxes paid on your income. Most are aware of the common deductions, but there are many deductions that simply get overlooked by most taxpayers. Gifts to charity are a good place to start. Most taxpayers know that when you give…
Tax Benefits for Members of the Military
Military members benefit from a variety of special tax benefits. These include certain nontaxable allowances, non-taxable combat pay, and a variety of other special tax provisions. Here is a rundown on the most prominent of the tax benefits. Service Member Residence or Domicile A frequent question by service members is “What is my state of…
Standard Deduction vs Itemized Deduction – What’s The Difference?
The Premise It’s one of the most important questions that every American tax filer has to answer: should I itemize or take the standard deduction instead? With the Tax Cuts and Jobs Act of 2017 making some fairly significant changes to the way both standard deduction and itemized deduction work, the question may seem even more complicated.…
Can You Claim a Baby Who Was Just Born on Your Taxes?
A lot of things change when you have a child. One of those things is your income tax regarding the deductions and credits you get. You can claim a baby who was just born on your taxes. To get the maximum tax benefit, get clued in on what steps to take and what deductions and…
8 Tax Deductions you may be Overlooking
Most taxpayers know about the big itemized deductions that can lower your tax bill, like mortgage interest, state income taxes, real estate taxes, and charitable donations. But these are just the most obvious ones to put on Schedule A. If you really want to pry loose some additional money-saving deductions, you’ll need to think beyond…
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