TAX DEDUCTIONS  
   
Definition  
Tax deductions reduce a taxpayer's taxable income and income tax. A tax deduction is an expense paid (or incurred) by a taxpayer which the tax code (either federal or state) allows to be subtracted from the gross income in order to calculate the actual tax. The tax savings amount is the computed by multiplying the allowed deduction be the taxpayer's marginal tax bracket (or tax rate). The higher the tax bracket is, the bigger are the tax savings.  
   
Standard Deductions  

The standard deduction is a fixed dollar amount that reduces the amount of income on which you are taxed. You cannot take the standard deduction if you claim itemized deductions. The amount of the standard deductions is set by the Internal Revenue Service and is adjusted every year to reflect the cost of living.

  
   
Itemized Deductions  
Auto registration fees    [Use it in your tax return]
Real estate expenses   [Use it in your tax return]
Mortgage Interest      [Use it in your tax return]
Charitable contributions  [Use it in your tax return]
Investment fees  [Use it in your tax return]
Tax Preparation expenses  [Use it in your tax return]
State, Local & Foreign Taxes  [Use it in your tax return]
Casualty and Theft Losses  [Use it in your tax return]
Books and Publications  [Use it in your tax return]
Dues and Fees  [Use it in your tax return]
Education and Research  [Use it in your tax return]
Business use of Home [Use it in your tax return]
Computer expenses  [Use it in your tax return]
Internet Access  [Use it in your tax return]
Job search expenses  [Use it in your tax return]
Medical expenses  [Use it in your tax return]