When it comes to your personal income taxes, there are two ways you can lower your tax bill; either by taking the standard deduction or by itemizing your deductions. When doing your taxes, you have to decide whether you want to take the standard deduction or itemize your deductions.
The standard deduction is a set amount of money that the government lets you subtract from your income, so you pay less in taxes. But if you have certain expenses, like state and local taxes, mortgage interest, charitable donations, or even medical expenses. You can list them out separately, and that could provide you with an even bigger break on your taxes. This is referred to as itemizing your deductions.
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