Tax deductions are amounts that can be removed from income that can be taxed. This is normally derived from expenses that can possibly lead to additional income. The difference between the deductions, credit and exemptions are that deductions and exemptions will reduce the taxable income while the credits will reduce tax. Within the scope of personal income tax, there are many deductions that ca be removed from the taxation of an individual to lower the amount the individual is liable for. Some of the deductions may be subjected to conditions to affect whether they can be applied or not. It can also be determined the limits to which they can be claimed. There are various benefits that can be derived from having the knowledge of the tax laws and this book will seek to cover some of the deductions that may be beneficial to an individual.
