What deductions can I take?

In Virginia, there are numerous deductions you can take to reduce your taxes. Generally speaking, deductions lower your taxable income, and thus reduce the amount of taxes you owe. The most common deduction is the federal standard deduction. This deduction allows you to deduct a flat amount of income from your tax bill. For 2020, the standard deduction for individuals is $12,400. You can also opt for the itemized deduction, which allows you to deduct specific expenses. You can also deduct taxes that you pay to the state of Virginia. For example, if you pay income taxes or real estate taxes to the state of Virginia, you can deduct them from your federal taxes. Additionally, you can deduct state and local sales taxes. If you are self-employed, you may also be able to deduct certain business expenses. This includes the cost of supplies, equipment, and anything else related to running your business. Finally, you may be able to deduct charitable contributions. If you donate to a qualified charitable organization, you can deduct the amount you donated on your taxes. In summary, there are numerous deductions you can take in Virginia. This includes the federal standard deduction, taxes paid to the state of Virginia, business expenses, and charitable contributions. Utilizing deductions correctly can save you a significant amount of money on your taxes each year.

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What deductions can I take?

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