What's a taxable deduction?

Question

What's a deduction? and a taxable deduction?

Answer 1

Both deductions and credits can decrease income tax liability. Deductions reduce
taxable income, and decrease income tax liability because tax rates are applied to
a lower income figure. Credits, in contrast, are subtracted directly from income
tax liability.

Taxable deductions:
Contributions into personal pension plans
Contributions into retirement annuity schemes
Contributions into employer's pension schemes not deducted at source from pay
Gross amount of free-standing additional voluntary contributions paid
Maintenance or alimony payments made under a court order, Child Support Agency assessment or legally binding order or agreement
Subscriptions for Venture Capital Trust shares (up to $100,000)
Subscriptions under the Enterprise Investment Scheme (up to $150,000)
Certain gift Aid and payments under charitable covenants
Post-cessation expenses and losses on relevant discounted securities
Payments to a trade union or friendly society for death benefits.
Travel and subsistence costs
Fixed deductions for expenses
Professional fees and subscriptions
Certain other expenses and capital allowances.
Allowable deductions from rental income include:
Rents, rates, insurance, ground rents
Repairs, maintenance and renewals
Finance charges, including interest
Legal and professional costs
Costs of services provided, including wages
Wear and tear allowances.

Deductions
Gifts and charity
Expenses for voluntary work
Expenses related to your job
Child care expenses
Adoption expenses
Alimony expenses
Tax return preparation fees

Crystal
www.crystalibarra.com

Answer 2

You have to understand that government charges you tax on every dollar you make. Some dollar amount they let it go and not charge any tax on those dollars. For example if you own a home and pay $3000 interest to the bank in a year the Federal government says that those $3,000 from your income are tax-free. So they will charge tax on the remaining of your income but not on the $3,000 that you paid to the bank as interest. Then if you paid $1,500 to another bank for your car loan that does not become tax-free. Thus to lower your tax burden you have to divert your money to the deductions that the government allows as tax-free. The home loan interest is considered tax-free deduction for most consumers.
I am not sure what is a taxable deduction.

Answer 3

If you adopt me before Jan 1 2007 then you will have another taxable deduction.

Answer 4

some issues could be paid with "in the past tax" money which reduces your taxable earnings. i assume you're speaking approximately those products? the main difficulty-loose is wellness care coverage rates. (scientific, dental, creative and prescient). you additionally can fund a flexible spending account for wellness care with pretax money. i'm no longer attentive to any others.

Answer 5

well I that my kids are taxable
cloths I take to goodwill
charities as in church and giving to cancer societies

Answer 6

http://www.realestatedonation.org/ allows you to take a write off equal to the appraised value of your property.