IRS Tax Deductions
IRS tax deductions (also called tax write off) are what the IRS allow individuals and businesses to deduct or subtract from their gross income. The more IRS tax deductions you have, the lower your taxable income and the less taxes you pay. That's why most people and businesses try very hard to find and claim as many IRS tax deductions as possible. Below are how IRS tax deductions work as well as the types of IRS tax deductions individuals and businesses can claim.
IRS federal tax deductions can be divided broadly into the following categories. Details of IRS tax deductions are more complicated than this simple guide. See other sections of this Taxes website for more details including list of IRS tax deductions for businesses and individuals.
Personal IRS tax deductions
Unfortunately there aren't many personal IRS tax deductions since most personal expenses (unlike business expenses) are not tax deductible. While there are many IRS business tax deductions available for business owners, if you don't own a business, then you can only deduct certain expenses allowable by the IRS tax rules with limitations such as:
Investment IRS tax deductions
The IRS allows many tax deductions on investments especially in retirement accounts such as IRAs. When investing, you may incur all kinds of expenses and fees. Investments in certain accounts are tax deductible allowing the investor to accumulate their investment tax free.
IRS business tax deductions
There are more IRS business tax deductions than individual tax deductions for employees. If you are a sole proprietor, you can write off and claim many tax deductions which the IRS allows such as expenses for: