income tax deductions

Income tax deductions are expenses or allowances that reduce your taxable income, ultimately lowering the amount of tax you owe. Instead of paying taxes on the full income you earned, deductions decrease that income figure, making the tax bill smaller. Common deductions include mortgage interest, charitable donations, and certain work-related expenses. They are designed to reflect legitimate costs or activities and help ensure you pay only the appropriate amount of tax based on your actual financial situation. Properly claiming deductions can lead to significant tax savings while remaining compliant with tax laws.