Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

tax deduction

Read a random definition: emoluments clause

A quick definition of tax deduction:

Tax deduction: A way to reduce the amount of taxes you owe by subtracting certain expenses or items from your taxable income. This can include things like charitable donations, healthcare costs, and business expenses. The amount you can deduct varies depending on where you live and whether you are an individual or a business. You can either use the standard deduction or itemize your deductions, but you can't use both. The standard deduction is a set amount that everyone can use, while itemized deductions are specific to your situation.

A more thorough explanation:

Tax deduction is a way to reduce the amount of taxes a person or organization owes in a given year. It is an item or expense that can be subtracted from the total taxable income, which can significantly lower the amount of taxes owed.

For example, if an individual made $50,000 in a year and had $10,000 worth of tax deductions, their taxable income would be reduced to $40,000. This means they would owe less in taxes than if they did not have any deductions.

Some common tax deductions include:

  • Charitable contributions
  • Healthcare costs
  • Capital losses
  • Business expenses

The amount and types of deductions that can be claimed vary depending on the jurisdiction and whether the tax is for an individual or organization. In the United States, individuals can choose to either use the standard tax deduction or itemize their deductions. The standard deduction is a fixed amount that varies based on filing status and age. For example, in 2021, single filers have a standard deduction of $12,550, and married filers have a standard deduction of $25,100.

Itemizing deductions means using all the specific deductions applicable to an individual. However, they can only use one or the other. A person generally will use the much simpler standard deduction unless their itemized deductions will total more than the standard deduction.

Overall, tax deductions are a way to reduce the amount of taxes owed and can be a significant benefit for individuals and organizations.

Tax Cuts and Jobs Act of 2017 (TCJA) | Tax evasion

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
babycat
19:43
We sharing Goodreads on here?
1a2b3c4d26z
19:43
jurassic park unironically good
1a2b3c4d26z
19:43
crime and punishment top 1
1a2b3c4d26z
19:43
im okay with being called basic for that one
2big2fail
19:44
im gatekeeping my current book
Dkk
19:44
@2big2fail: looks like an Aristotle wannabe.
2big2fail
19:44
whatever. im just reading the financial times
1a2b3c4d26z
19:44
ft goated
concorde
19:45
I hate Dostoevsky
2big2fail
19:45
studying cloud computing, not the cloud of unknowing
babycat
19:45
@1a2b3c4d26z: serotonin is my fave houellebecq
1a2b3c4d26z
19:45
chefs kiss mwah
2big2fail
19:45
i honestly dont understand why people like houellebecq
1a2b3c4d26z
19:45
I'll try to describe how I feel about him
2big2fail
19:46
my favorite french authors are balzac and proust, as basic as that is
1a2b3c4d26z
19:46
basically I read his book and the whole time I read it I liked it so I finished it and I said hm I liked that book written by the author houellebecq
1a2b3c4d26z
19:46
balzac hahaha
2big2fail
19:46
lost illusions is goated
does it take longer to hear back if u applied to scholarships for schools like ucla???
Dkk
19:47
For Houellebecq I have only read https://en.wikipedia.org/wiki/Atomised
JumpySubsequentDolphin
19:47
you guys should read averroes
also do we think ucla wont do a wave tmw cuz they did a tiny one tonight, can schools do 2 days ina. row
JumpySubsequentDolphin
19:47
perhaps read the incoherence of philosophy first and then read averroes’ response: “the incoherence of the incoherence”
2big2fail
19:47
@Dkk: i read that one. just thought it was boring and not really in touch with reality
JumpySubsequentDolphin
19:47
SPLITTY usually they’re Friday!
Dkk
19:48
@2big2fail: I agree.
HUH then what the heck is this wave tonight ab are they tryna give us an attack???
babycat
19:49
@texaslawhopefully: don’t really remember it but my ibooks library says i read it in 2020. that whole year is a haze.
Dkk
19:51
My favorite book though, The Good Morty: https://archive.org/details/TheGoodMorty
LSD+ is ad-free, with DMs, discounts, case briefs & more.