What deductions can I take?

Tax deductions are a way of reducing the amount of money you owe in taxes. Generally, deductions decrease the amount of income you are taxed on. In Illinois, some of the deductions you can take are contributions to an IRA account, student loan interest payments, education expenses, and medical care expenses. An IRA account is a retirement account that you pay into each year. Contributions to an IRA account are tax deductible, which means the amount you pay into the account is not taxed. Additionally, student loan interest payments are also deductible. This means that if you are paying off a student loan, you can deduct the interest you have paid on the loan from your taxable income. If you or your dependents are attending college, you can deduct certain education expenses. These deductions include tuition fees, books, and supplies. When it comes to medical care expenses, Illinois allows you to deduct any out-of-pocket expenses related to medical treatment. This includes doctor’s visits, prescription drugs, and insurance costs. When filing your taxes, you must make sure to itemize your deductions. This means that you must list all of the specific deductions you are taking. Doing so will help you lower your taxable income and reduce your federal tax liability.

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What deductions can I take?

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