Tax Deductible

Tax deductible refers to expenses that you can subtract from your total income before tax is calculated, which can lower your taxable income and, consequently, the amount of tax you owe. Common examples include donations to charity, medical expenses, and certain business costs. By claiming these deductions, you effectively reduce your taxable income, meaning you pay tax on a smaller amount. It’s important to keep records of deductible expenses to report them accurately on your tax return. Understanding what is tax deductible can help you manage your finances and potentially save money on taxes.