#55: The Finance Flash Go Podcast | Important Topics About Money | Tax Deductions

Today on the Finance Flash Go! podcast, we’re going to discuss tax deductions. A tax deduction is a form of a tax break. Essentially, a tax deduction lowers the amount of a person's taxable income. In this way, the amount of income that you are taxed on in that given year is less. Thus you pay less taxes. The amount that a tax deduction saves you in taxes is equal to the whole sum of your deductions multiplied by your marginal tax rate. Some tax deductions are able to be taken directly from your taxable income. These are called “above the line” deductions or income adjustments. Other tax deductions only can be counted if, when summed up, they are greater than the defined “standardized deduction” for that given tax year. If they total less than this, it is better to take the standarized decution which in this case would be greater. Mortgage interest payments, property taxes, job related expenses, healthcare costs and other payments are eligible for tax deductions. Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice. A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions. We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!