Tax deductions and credits are two of the most important tools for reducing your taxable income and saving money on your taxes. Tax credits are more beneficial than deductions, as they reduce your tax bill dollar-for-dollar. Deductions, on the other hand, reduce the amount of your income that is taxable by a percentage of your highest federal tax bracket. The amount you save with a tax deduction or credit will largely depend on your federal tax category and the number of dependents you have.
When you own your own business, there are certain tax waivers related to your business that can be deducted from your taxable income. These expenses are directly related to running your business and can be used to reduce the amount of taxes you owe. Examples of these expenses include fees for maintaining a business checking account, getting new checks, and more. Adoption tax credits are also available to cover adoption fees, court costs, attorney fees, travel expenses, and other expenses that are directly related to adoption.
Additionally, there are many other tax credits and deductions that you may qualify for depending on your situation. These include the electric vehicle credit, the child tax credit, student loan interest deductions, and more. When filing your taxes, it is important to consult a tax professional if you need help determining your eligibility or filing your return. Most Americans tend to take the standard tax deduction when they file their taxes, but there may be other deductions or credits that could help lower your tax bill or increase your refund.
TurboTax Live's tax experts are available in English and Spanish all year round to review, sign and file your tax return. Additionally, QuickBooks Self-Employed can be used to easily track income, expenses and mileage throughout the year and import information directly to TurboTax self-employed tax return.