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.
How the charity uses the vehicle you donate affects your deduction.
Some early IRA withdrawals are OK with the IRS.
The IRS offers a number of ways to track down your tax refund.
Why did your taxes get audited? Ask your tax peers.
Avoiding these errors will save you time and money.
Shopping for insurance? Follow these tips from top experts in the insurance field.
Think your holiday gift list might break your budget? Consider one of these items on sale this month.
Before you take off, land the best deal on your airfare.
Follow these expert tips to save on gift wrapping without breaking the bank.
Bankrate hits the street to find out how consumers feel about Black Friday.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
A little research could save you BIG on interest.