Deductions & Credits
Congress created two ways to reduce your tax bill: A tax deduction subtracts from your reportable income, while a tax credit subtracts from your liability, producing greater tax savings.
The Basics
Differences between deductions and credits, different classes of deductionsDeductions Allowed in Figuring Adjusted Gross Income
Expenses deductible directly from gross income, costs of moving to a new job locationClaiming the Standard Deduction or Itemized Deductions
When to itemize, husbands and wives filing separate returns, standard deduction for dependents, and moreCharitable Contribution Deductions
Qualifying charitable donations, donations of property, reporting charitable contributionsItemized Deduction for Interest Expenses
Home mortgage loans, investment loans, timing of interest deductionsDeductions for Taxes
Deductable vs. nondeductable taxes, state and local income taxes or general sales taxes, deducting real estate taxes, and moreMedical and Dental Expense Deductions
Itemized medical expenses, nondeductible medical expenses, decedent's medical expenses, and morePlanning Alimony and Marital Settlements
Tax rules for alimony payments, minimum payments and recapture of alimonyHousehold Employment Taxes ("Nanny Tax")
Who is a household employee, Social Security and Medicare (FICA) taxes for household employees, filing Schedule H to report household employment taxesEducational Tax Benefits
Scholarships, grants, and excludable savings bond interest, qualified tuition programs (Section 529 plans), Hope and Lifetime Learning Credits, and moreCasualty and Theft Losses and Involuntary Conversions
Deductible casualty losses, deductible theft losses, how to figure and claim your casualty or theft loss, and moreDeducting Car and Truck Expenses
Standard mileage rate, expense allocations, depreciation restrictions on cars, trucks, and vans, and moreMiscellaneous Deductions Reported on Schedule A
2% AGI floor reduces most miscellaneous expenses, effect of 2% AGI floor on deductionsTravel and Entertainment Expense Deductions
Commuting and meal expenses, deducting travel expenses away from home, deducting expenses of a business-vacation trip, and moreTax Credits
Alternative Minimum Tax (AMT), personal credits, dependent care credits, and more
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