I hear on TV people talking about deductibles when filing taxes. What does that mean? I think on the Simpsons they said having Maggie is a deductible. Deducting what from what? I’m not American, so I don’t follow that system.
Follow-up: I think I understand it a lot more now. The government will set out criteria which will entitle you to pay less tax. It’s your job to notify the tax man at the start/end? of the tax year, so that you pay what’s deemed correct.
In: 8
I think you are confusing the terms “deduction” and “deductible”.
In the context of taxes, certain actions may result in the tax filers being able to claim an exemption of part of their income from income taxes. This is called a tax deduction.
Having a dependent is one common deduction that many apply to some filers.
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