Itemized deductions are an optional deduction taxpayers can take on tax returns for things such as medical expenses, property taxes, mortgage interest, and charitable contributions.
The “standard deduction” is a deduction all taxpayers are entitled to. The deduction reduces taxable income.
The tax brackets stop at $0 of taxable income — having taxable income below $0 doesn’t mean your tax liability is a negative number or that the government “pays you more money.”
Many tax breaks that had expired or were set to expire got extended in the tax bill passed by Congress last week. But one break that did not get extended and thus has gone away is the additional standard deduction for property taxes paid. This tax break allowed people who don’t itemize deductions to add up […]