![]() ![]() Before claiming the standard deduction, make sure you understand the rules - for example, you can’t de duct home mortgage interest if you are also claiming the standard deduction. The most-used tax deduction is the standard deduction, which is a no-questions-asked amount that you can subtract from your income, lowering the amount of income on which you have to pay taxes. See the chart above to find out where it places you. Once you’ve determined your total income, you can generally subtract any deductions to arrive at your taxable income. Tax deductions: Money that’s subtracted from your total income, which lowers the amount of tax you have to pay.(It also includes capital gains, which can be taxed at different rates depending on whether they are short or long term, and on what your income is). This includes your salary, wages, tips, any payment for freelance work, sales from real estate, unemployment benefits over $10,200 and more. ![]()
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