Like most people, you probably think of deductions as a way to reduce your taxes. But that’s not quite what they are. A deduction is a tax break that allows you to take an amount of money out of your taxable income and use it to lower your overall taxable income.
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These Types of Deductions can be Either Personal or Business Deductions
Personal deductions include things:
- Medical expenses (deducting them can help reduce your taxable income by up to 40% if you’re a high-income earner).
- State and local taxes (deducting them can help reduce your taxable income by up to 40%).







