Find out what you need to know about tax deductions, so you get the most from your taxes.
The process of doing your taxes can be a dizzying task. With all the calculations and tax terminology, your taxes are confusing. Often the term tax deduction is used when you’re doing your taxes, but many of us don’t know exactly what that means. Check out what you need to know about the standard tax deduction so that you’re best able to do your taxes.
What is a tax deduction?
Tax deductions are expenses that taxpayers can subtract from their income when filing taxes. There are various tax deductions that apply to both businesses as well as individuals.
What is a standard tax deduction?
A standard tax deduction is the value of which you’re able to claim to reduce the amount that you need to pay in income tax. This number is based on a variety of factors. Things such as your age and filing status can affect how much you can deduct from your taxes. However, keep in mind that your standard deduction is a fixed number. The 2016 standard tax deductions stand at $6,300 for singles and married persons filing separately, whereas married couples filing jointly can deduct $12,600. Heads of households, however, can deduct up to $9,300.
What are itemized tax deductions?
Itemized tax deductions are a different type of tax deduction. These deductions vary based on certain actions that you’ve taken in the past year. These types of deductions can fluctuate. These types of deductions are based on factors such as mortgages and charitable contributions.
Stay informed when it comes to your tax deductions. Make the most of your taxes and take advantage of any applicable deductions. Ensure that you make the most of your insurance when you invest in the right policies. The professionals at Phocus Insurance can find you the best policies for your needs. Located in Phoenix, Arizona, we serve all your personal and commercial insurance needs. Contact us for more information.
