What Does Tax Deductible Mean? – Definition, Types, Benefits, And More

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Tax deductible means subtracting expenses from your income to lower taxable income and reduce owed taxes.

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Individuals and businesses can benefit from tax deductions by reducing their taxable income.

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Common tax deductions for individuals include mortgage interest, medical costs, and charitable contributions.

Businesses can deduct various expenses like rent, payroll, and utilities to lower their taxable income.

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Choosing between standard deduction and itemizing requires considering income levels and record-keeping for receipts.