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Taxes

Credit, tax

Tax deductions refer to the reduction of taxable income, resulting in a lower amount of tax owed. This is different from offsetting against income, as it directly reduces the amount of tax due. Deductions can be claimed for various expenses, such as charitable donations or business expenses. It is important to understand the difference between deductions and income offsets in order to effectively manage your tax liability. By utilizing deductions, you can potentially save money on your taxes and improve your overall financial situation.
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