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Lecture 9: Essential Tax Principles
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includes things like interest earned on a savings account, rent from
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% The government has become far stricter about reporting small
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you have a hobby or online side business that produces income, you
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Deductions
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calculating the amount of income we use to estimate federal income
taxes and eligibility for other types of deductions—also known
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starting to phase out deductions and exemptions for high-income
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% The most common above-the-line deduction is the amount you save
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sheltered retirement account, you can reduce your income today by
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retirement savings as income when you pull it back out after you
retire, so the primary advantage of these accounts is the ability to
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% Other above-the-line deductions include interest on student loans,
moving expenses, alimony, health insurance, and self-employment