BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Deductions multiply the amount of pay by 6 each paycheck you get.
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Deductions are found by dividing your gross income by your net income.
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Deductions are another word for fines.
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Deductions reduce the income that you actually have to pay taxes on.
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Detailed explanation-1: -Tax deduction refers to claims made to reduce your taxable income, arising from various investments and expenses incurred by a taxpayer. Thus, income tax deduction reduces your overall tax liability. It is a kind of tax benefit which helps you save tax.
Detailed explanation-2: -What is a Tax Deduction? Tax deduction lowers a person’s tax liability by reducing their taxable income Because a deduction lowers your taxable income, it lowers the amount of tax you owe, but by decreasing your taxable income-not by directly lowering your tax. The benefit of a tax deduction depends on your tax rate.
Detailed explanation-3: -Deductions can reduce the amount of your income before you calculate the tax you owe. Credits can reduce the amount of tax you owe or increase your tax refund. Certain credits may give you a refund even if you don’t owe any tax.
Detailed explanation-4: -A tax deduction is a provision that reduces taxable income. A standard deduction is a single deduction at a fixed amount. Itemized deductions are popular among higher-income taxpayers who often have significant deductible expenses, such as state/local taxes paid, mortgage interest, and charitable contributions.