What is Tax deduction?
A '''tax deduction''' is a way to reduce the amount of [[income]] that is subject to a [[tax]]. Tax deductions and [[tax credit]]s both lower the amount of [[money]] a person has to pay in taxes.<ref name=USTC>{{cite web |url=http://www.irs.com/articles/tax-credits-vs-tax-deductions |title=Tax credits vs. tax deductions |author=Elizabeth Rosen |date=28 August 2013 |publisher=US Tax Center |access-date=10 December 2015 |archive-date=10 December 2015 |archive-url=https://web.archive.org/web/20151210084654/http://www.irs.com/articles/tax-credits-vs-tax-deductions |url-status=dead }}</ref> But they do it differently. A tax deduction is subtracted from the [[income|gross income]] of a [[taxpayer]].<ref name=InvAnsw>{{cite web |url=http://www.investinganswers.com/financial-dictionary/tax-center/tax-deduction-4148 |title=Tax Deduction |publisher=InvestingAnswers, Inc |access-date=10 December 2015 |archive-date=3 November 2015 |archive-url=https://web.archive.org/web/20151103092703/http://www.investinganswers.com/financial-dictionary/tax-center/tax-deduction-4148 |url-status=dead }}</ref> For [[example]], if a couple had an income of [[$]]60,000 for the year, and they had paid $10,000 in [[interest]] on their [[mortgage]], their taxable income would be reduced to $50,000. The value of a tax deduction depends on a person's tax rate, which rises with income. A tax credit, by comparison, has the same value for all taxpayers.<ref>{{cite web |url=http://www.taxpolicycenter.org/briefing-book/background/issues/credits.cfm |title=Income Tax Issues: What is the difference between tax deductions and tax credits? |publisher=Urban Institute, Brookings Institution |access-date=10 December 2015 |archive-date=10 December 2015 |archive-url=https://web.archive.org/web/20151210073308/http://www.taxpolicycenter.org/briefing-book/background/issues/credits.cfm |url-status=dead }}</ref> In the [[US|USA]], there are hundreds of different tax deductions. Some are only available to taxpayers in certain income [[wikt:bracket|bracket]]s. Some are