Tax Deduction

When you file your taxes, you may be able to claim a tax deduction. A tax deduction allows you to save money on your taxes. Current tax deductions include mortgage interest paid and student loan interest paid. Including tax deductions on your tax return may lower your tax bill. Consult a tax preparer, accountant or enrolled agent to know for sure.

Featured Tax Deduction Article

New Tax Deduction For Car Buyers

New car purchases qualify for a tax deduction for the state of local sales tax. The Treasury Department announced that purchases made in states without sales tax can still qualify for the tax deduction. There are specific time limits and income requirements to be eligible for the new car sales tax deduction. Also, a tax deduction is different from a tax credit. A tax credit reduces the amount you owe the government dollar for dollar. That's to say, a $1,000 tax credit reduces your tax liability by $1,000. And, if you are in a 25% tax bracket and receive a $1,000 tax deduction, you benefit by obtaining a $250 reduction in your income taxes.

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