Tax Deduction
TaxesAn expense that reduces your taxable income, lowering the amount of income subject to tax.
Example
Example: On a $75,000 salary, understanding tax deduction could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how tax deduction works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.