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.
If you owe the IRS, you have several options for paying. But watch the fees.
The IRS offers several ways to pay your tax tab electronically.
How the charity uses the vehicle you donate affects your deduction.
As the year winds down, tax planning is a must on the to-do list. Here are a few things to keep in mind.
Start gathering all your paperwork for the tax season.
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