Get Rid of QUALIFYING FOR A TAX DEDUCTION,Salaried employees form the major chunk of the overall taxpayers in the country and the contribution they make to the tax collection is quite significant. Income tax deductions offer a gamut of opportunities for saving tax for the salaried class. With the help of these deductions and exemptions and, one could reduce his/her tax substantially.
In this article, we try to list some of the major deductions and allowances, available to the salaried persons, using which one can reduce their income tax liability.
Get Rid of QUALIFYING FOR A TAX DEDUCTION
The income tax is the amount of money that the federal or state government takes from your taxable income. It is important to note that taxable income and total income earned for the year are not the same. This is because the government allows a portion of the total income earned to be subtracted or deducted to reduce the income that will be taxed. Taxable income is usually smaller than total income due to deductions, which help to reduce your tax bill.
Get Rid of QUALIFYING FOR A TAX DEDUCTION,You can select one of two types of deductions: itemized deductions or the standard deduction. Whichever one you choose is up to you, but you cannot use both. The itemized deduction option allows you to list all your tax-deductible expenses for the year, such as property tax, medical expenses, eligible charity donations, gambling losses, and other costs.
incurred that influence your bottom line tax figure. Normally, if the total value of itemized deductions is higher than the standard deduction, you would itemize. Otherwise, you should opt for the standard deduction.