{"id":358480,"date":"2020-05-26T16:00:59","date_gmt":"2020-05-26T22:00:59","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=358480"},"modified":"2020-06-30T18:10:17","modified_gmt":"2020-07-01T00:10:17","slug":"commonly-overlooked-tax-breaks","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/taxes\/commonly-overlooked-tax-breaks\/","title":{"rendered":"Commonly Overlooked Tax Breaks"},"content":{"rendered":"\n
\"A<\/figure>\n\n\n\n

Note: This article is intended as an informational overview only. If you have any questions about your specific circumstances, please contact a tax professional.<\/strong><\/em><\/p>\n\n\n\n

Tax deductions, tax credits, tax exemptions\u2014oh my. There are a lot of terms to keep track of when you\u2019re preparing your taxes, and if you\u2019re not careful, you could miss out on some benefits that could reduce your tax bill (and maybe even score you a refund). <\/p>\n\n\n\n

What\u2019s a Tax Break?<\/h2>\n\n\n\n

The term \u201ctax break\u201d<\/a> can be used to describe anything that decreases how much you owe in taxes\u2014that includes deductions, credits, exemptions and other incentives. Sometimes it also refers to when the government gives certain organizations or people of a certain income level a better deal on taxes. <\/p>\n\n\n\n

Everything we\u2019re going to cover here is under the \u201ctax break\u201d umbrella. Now that we\u2019ve established that, let\u2019s dive in. <\/p>\n\n\n\n

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What\u2019s a Tax Deduction?<\/h2>\n\n\n\n

A tax deduction is something that lowers your taxable\nincome, which in turn lowers your tax bill. For example, if your annual gross\nincome (AGI) is $50,000 and you get a $5,000 tax deduction, you will be taxed\non $45,000.<\/p>\n\n\n\n

Almost everyone gets at least one tax deduction, but you have to choose whether you want to take the standard deduction or itemize your deductions. <\/p>\n\n\n\n

The standard deduction<\/strong> is a set amount, determined by the government, that you can decrease your AGI by. Your filing status determines how much it will be worth for you. For example, CNBC estimates that if you\u2019re single when you file your 2020 taxes, your standard tax deduction will be $12,400<\/a>. But if you\u2019re married and filing jointly, it will be $24,800. There are also different amounts for taxpayers who fit into any of these categories: <\/p>\n\n\n\n