Tax deductions are expenses that can be deducted from a business’s taxable income, which helps lower the amount of taxes owed to the government.īusinesses of all sizes can benefit from tax deductions to reduce their income tax bills. These deductions reduce your taxable income, potentially lowering your overall tax liability. For heads of household, it’s $20,900, and for married couples filing jointly, it’s $27,900. For single filers and married individuals filing separately, it is $13,950.
The standard deduction for the 2023 tax year varies depending on your filing status.
