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What is the purpose of income tax deduction?

Nicholas Rivera

in Student Loans

1 answer

1 answer

Tara Andrews on April 3, 2019

A deduction on your tax return would reduce your taxable income on your form 1040 tax and reduce their federal income tax. An income tax deduction amount of your gross pay would be a prepayment of any future federal income liability you may have after your tax return is completely at the end of the fiscal year, and if enough is deducted from your gross pay you could end up receiving a refund of some of the withheld income tax amount.

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