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  2. Tax advantage - Wikipedia

    en.wikipedia.org/wiki/Tax_advantage

    For example, individual retirement accounts are tax-advantaged since they are tax-deferred. By encouraging investment in these accounts, there is a reduced need for the government to support citizens later in life by spending money on welfare or other government expenses. Capital gains tax rate benefits may also spur investment.

  3. Tax deduction - Wikipedia

    en.wikipedia.org/wiki/Tax_deduction

    A tax deduction or benefit is an amount deducted from taxable income, usually based on expenses such as those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and tax credits. The difference between deductions, exemptions, and credits is that deductions and exemptions both reduce taxable ...

  4. The Pros and Cons of Getting a Large Tax Refund - AOL

    www.aol.com/pros-cons-getting-large-tax...

    A large tax refund may seem like a financial windfall, but is it the smartest way to manage your money? Find Out: 6 Reasons Your Tax Refund Will Be Higher in 2025 Be Aware: 3 Sneaky Things You ...

  5. Tax-deferred: What does it mean and how does it benefit you?

    www.aol.com/finance/tax-deferred-does-mean-does...

    Tax-advantaged retirement accounts where contributions may be tax-deductible, and growth is tax-deferred until withdrawal. Retirement plans such as a 401(k) and 403(b)

  6. Tax exemption - Wikipedia

    en.wikipedia.org/wiki/Tax_exemption

    Tax exemption is the reduction or removal of a liability to make a compulsory payment that would otherwise be imposed by a ruling power upon persons, property, income, or transactions. Tax-exempt status may provide complete relief from taxes, reduced rates, or tax on only a portion of items.

  7. What Is a Tax Deduction and How Do Tax Deductions Work? - AOL

    www.aol.com/finance/tax-deduction-tax-deductions...

    Tax deductions lower your taxable income, which reduces the amount of income tax you’re required to pay. Most tax deductions are expenses that you pay either to generate income or provide a ...

  8. Tax withholding - Wikipedia

    en.wikipedia.org/wiki/Tax_withholding

    Tax withholding, also known as tax retention, pay-as-you-earn tax or tax deduction at source, is income tax paid to the government by the payer of the income rather than by the recipient of the income. The tax is thus withheld or deducted from the income due to the recipient. In most jurisdictions, tax withholding applies to employment income.

  9. What Does Tax-Exempt Mean? - AOL

    www.aol.com/finance/tax-exempt-tax-exemption...

    What Does Tax-Exempt Mean? ... Disability benefits. If you become disabled and start receiving income or other disability benefits, the income is considered tax-exempt. You will need to report the ...

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