On this episode, we’re talking about: Deductions
So let’s say you’re single with a job as a lion tamer. You live alone, have no dependents, and your yearly income is eighty eight thousand dollars.
You have two choices when it comes to deductions: You can itemize your deductions, or take the standard deduction.
The lion food is an example of an itemized deduction. You can claim multiple itemized deductions but there are limits for each tax bracket and rules around each deduction.
The standard deduction is a fixed amount associated with your filing status and tax bracket. If you don’t want to add up all your expenses, the IRS allows you to just take the standard deduction. If your itemized deductions don’t add up to a lot, taking the standard deduction instead can often save you more money on your taxes.
So that’s the skinny of Tax Deductions. Want to learn more, CTA. Thanks for watching Tax Fundamentals.
