Tax Breaks

Tax breaks are government incentives that reduce the amount of tax you owe. They can come in the form of deductions, credits, or exclusions. For example, a deduction lowers your taxable income, potentially reducing your tax bill, while a credit directly reduces the amount of tax you owe. These incentives aim to encourage certain behaviors, like saving for retirement or buying a home. Overall, tax breaks are useful tools for individuals and businesses to lower their tax liability legally, making financial planning more manageable and promoting economic activities aligned with policy goals.