When filing your tax return, you can lower your tax bill by claiming a tax deduction. You can either:
- Take the standard deduction: a large, fixed dollar amount determined by the federal government for that tax year,
OR
- Itemize your deductions: the government provides a list of hundreds of smaller available deductions, and you deduct all those that you qualify for. This usually takes longer, and you need written proof for every deduction you are claiming.
[Of course, you want to choose the option that will lower your tax bill the most]