Pay Less Tax: 27 IRS Tax Deductions and Credits You Need to Know
Lowering your taxable income is the key to paying less to the IRS. Several federal tax credits and deductions can help.
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Lowering your taxable income is the key to paying less to the IRS. Several federal tax credits and deductions can help.
It’s important to note that if you shift to the New Tax regime, the exemption for HRA will not be applicable.
Anil Rego explains the implications of choosing between old and new tax regimes, emphasizing the importance of deductions like home loan interest. Opting in is necessary for the old regime, which offers specific benefits for tax planning. Rego says: "It makes sense for you to go for the new tax regime if you do not have too much tax saving investments. But you would ideally need to compute it."
Section 80C is the most well-known and widely used deduction. But it is mostly for those who will opt for or have already opted for the Old Tax regime.
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