If taxes take a percentage of your income, what if you could reduce your income without actually making less money? 🤔

Tax deductions are your friend: they can reduce your taxable income, without reducing your ACTUAL income! 🥳

💡Taxable Income = income that can be taxed

Similar to tax credits, which reduce the amount you owe in taxes, Tax Deductions also help you save money on taxes 🥳

Instead of reducing money owed directly, Tax Deductions reduce your taxable income 🤑

So, if your original taxable income is $20,000/year from your secret small business, a tax deduction can reduce that amount! 🥳

A common example may be student loan interest! 🤔

Let’s say you get a 5% tax deduction for your student loans and are otherwise making $20k/year from your small business 💸

Thanks to the 5% deduction, your taxable income would be 5% less, or $19K instead of $20K. 🤑

Your tax bracket rate of 10% will still apply, but the overall amount is lower, resulting in less owed 💪

There are also other deductions available, such as medical expenses, student loan interest, child care expenses, and more. 🤗

Some expenses may even give you tax deductions AND tax credits!

Tax deductions are a great way to save money on your taxes and work hand in hand with tax credits 💵