Under United States tax law , itemized deductions are eligible expenses that individual taxpayers can claim on federal income tax returns and which decrease their taxable income, and are claimable in place of a standard deduction , if available.
11-709: [REDACTED] Look up deduction in Wiktionary, the free dictionary. Deduction may refer to: Philosophy [ edit ] Deductive reasoning , the mental process of drawing inferences in which the truth of their premises ensures the truth of their conclusion Natural deduction , a class of proof systems based on simple and self-evident rules of inference that aim to closely mirror how reasoning actually occurs Taxation [ edit ] Tax deduction , variable tax dollars subtracted from gross income Itemized deduction , eligible expense that individual taxpayers in
22-485: A 2% floor, a.k.a. the "2% Haircut". A taxpayer can only deduct the amount of miscellaneous itemized deductions that exceed 2% of their adjusted gross income. For example, if a taxpayer has adjusted gross income of $ 50,000 with $ 4,000 in miscellaneous itemized deductions, the taxpayer can only deduct $ 3,000, since the first $ 1,000 is below the 2% floor. There are 12 deductions listed in 26 U.S.C. § 67(b). These are not miscellaneous itemized deductions, and thus not subject to
33-456: Is about something. Deduction (food stamps) , used in the United States to calculate a household's monthly food stamp benefit goods See also [ edit ] Induction (disambiguation) Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with the title Deduction . If an internal link led you here, you may wish to change
44-413: Is different from Wikidata All article disambiguation pages All disambiguation pages deduction [REDACTED] Look up deduction in Wiktionary, the free dictionary. Deduction may refer to: Philosophy [ edit ] Deductive reasoning , the mental process of drawing inferences in which the truth of their premises ensures
55-496: The United States can report on their Federal income tax returns Standard deduction , dollar amount that non-itemizers may subtract from their income Other uses [ edit ] English modals of deduction , English modal verbs to state how sure somebody is about something. Deduction (food stamps) , used in the United States to calculate a household's monthly food stamp benefit goods See also [ edit ] Induction (disambiguation) Topics referred to by
66-435: The link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Deduction&oldid=1078988745 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Itemized deduction Most taxpayers are allowed a choice between itemized deductions and
77-415: The same term [REDACTED] This disambiguation page lists articles associated with the title Deduction . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Deduction&oldid=1078988745 " Category : Disambiguation pages Hidden categories: Short description
88-412: The standard deduction. After computing their adjusted gross income (AGI), taxpayers can itemize deductions (from a list of allowable items) and subtract those itemized deductions from their AGI amount to arrive at the taxable income . Alternatively, they can elect to subtract the standard deduction for their filing status to arrive at the taxable income. In other words, the taxpayer may generally deduct
99-458: The total itemized deduction amount or the applicable standard deduction amount, whichever is greater. The choice between the standard deduction and itemizing involves a number of considerations: Deductions are reported in the tax year in which the eligible expenses were paid. For example, an annual membership fee for a professional association paid in December 2009 for the year 2010 is deductible in
110-634: The truth of their conclusion Natural deduction , a class of proof systems based on simple and self-evident rules of inference that aim to closely mirror how reasoning actually occurs Taxation [ edit ] Tax deduction , variable tax dollars subtracted from gross income Itemized deduction , eligible expense that individual taxpayers in the United States can report on their Federal income tax returns Standard deduction , dollar amount that non-itemizers may subtract from their income Other uses [ edit ] English modals of deduction , English modal verbs to state how sure somebody
121-454: The year 2009. The United States has a comparatively large and complicated number of deductions owing to policymakers' preference to pass policy through the tax code. Allowable deductions include: Per the Tax Cuts and Jobs Act of 2017 , miscellaneous itemized deductions are not deductible for tax years 2018 to 2025. For tax years before 2018: Miscellaneous itemized deductions are subject to
SECTION 10
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