What Is a Deduction?
A deduction is an expense that can be subtracted from an individual or married couple’s gross income in order to reduce the amount that is subject to income tax. It is often referred to as an allowable deduction.
- Taxpayers who use the standard deduction may be able to file the abbreviated Form 1040-EZ.
- Taxpayers who itemize deductions must use the longer Schedule A Form 1040 and list…