Tax deductions decrease the amount of tax you owe to the federal government, therefore decreasing your taxable income. You are only required to pay tax on your taxable income, which is why claiming work-related expenses can be so effective and economic.
There are various ways tax deductions can be utilised to reduce your taxable income. The key to achieving maximum savings is to know your industry and the advantages available to you during tax time.
In order to learn more about the benefits of your particular industry, it’s advantageous to consult with a tax professional, as they are trained to specialise in tax deductions for a wide variety of industries. Seeking guidance from a professional will also allow you to adhere to legal standards and claim the deductions you deserve.
