what “tax deductible” actually means, practically speaking

266 views

I just don’t get it.

In: 3

10 Answers

Anonymous 0 Comments

In general you pay taxes on your income. For every dollar you make a certain percentage is paid in taxes, how big of a percentage depends on how much income you have already made. Tax deductible expenses though can be withdrawn from your income before tax. So for example if you make a dollar and spend it on a candy bar then you might have to pay a nickel in taxes. But if you make a dollar and donate it to a charitable organization then you do not have to pay any taxes.

You are viewing 1 out of 10 answers, click here to view all answers.