CNBC Explains

Tax Deductions: CNBC Explains

CNBC Explains
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Tax deductions are an important part of calculating your annual income. But many people are unclear about how deductions affect overall tax payments. The good news? There’s a simple calculation you can do, depending on your tax bracket, to help you estimate the effect. Salman Khan of the works through an example.

From this video, you’ll understand:

  • Basic misconceptions about tax deductions
  • How tax deductions reduce taxable income