From the course: Finance Foundations: Income Taxes

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Examples of individual tax breaks

Examples of individual tax breaks

From the course: Finance Foundations: Income Taxes

Start my 1-month free trial

Examples of individual tax breaks

“

- What is a tax break? A tax break is a provision in the tax rules that permits a taxpayer to legally pay less income tax. Now why do these tax breaks exist? One reason is for social fairness. Low-income people ought not to have to pay any tax when their income is so low when their income is solow that they are using all that they are using all of their income of their income to payfor living necessities. to pay for living necessities. Sometimes tax payers get a break if they spent their income in certain, in certain socially favorable ways, socially favorable ways such as by donating money to charity. So, tax breaks are provisions in a tax rules that permit a taxpayer to legally pay less tax. Let's talk about some general tax breaks that are available to people like you and to me. For example, if you're a single person in the United States, you can make income up to $12,000 you can make income of up to $12,000 before you have to pay any tax at all. That income is excluded from…

Contents