A tax deduction reduces taxable income, often due to expenses aimed at generating more income. Tax deductions, along with credits and exemptions, are forms of tax incentives. Deductions and exemptions lower taxable income, while credits reduce tax liability.
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A tax deduction reduces taxable income, often due to expenses aimed at generating more income. Tax deductions, along with credits and exemptions, are forms of tax incentives. Deductions and exemptions lower taxable income, while credits reduce tax liability.
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