What is a tax deduction?
The Bankrate.com financial term of the day is: "tax deduction."
The Internal Revenue Service allows you to lower your potential tax hit by subtracting some amounts from your income before it puts the bite on your money. A tax deduction is one kind of pretax subtraction. A taxpayer may take either a standard deduction amount, established each year by the IRS, or may itemize deductions, listing various eligible expenses such as mortgage interest and state income taxes.
A tax deduction lets you clip the amount of your income that's subject to taxes.
For help making sense of your taxes, visit the Taxes section at Bankrate.com.
The IRS offers several ways to pay your tax tab electronically.
The April 15 deadline is nearing, so pay attention to these last-minute tips.
A portion of your earned wages is deducted from your paycheck and set aside for taxes.
Don't miss these tax breaks -- they could save you some cash.
Before going out and spending the money, consider other options for your tax refund.
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Follow this 6-month homeowner countdown so you are ready come closing day.
Pay attention to fees on prepaid cards because in most cases you can avoid them.
Sleep better at night knowing you have extra money tucked away for unplanned expenses.
Do you want your kids to be smart about money? Follow these tips to get them started.
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A little research could save you BIG on interest.
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