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There are many different types of tax relief available to individuals and businesses. The most common types of relief are:
1. Tax deductions
2. Tax credits
3. Tax abatements
4. Tax deferrals
5. Tax exemptions
1. Tax deductions reduce the amount of income that is subject to taxation. They are available for a variety of expenses, including home mortgage interest, charitable donations, and business expenses.
2. Tax credits lower the amount of tax that is owed. They may be refundable, meaning that the taxpayer may receive a refund if the credit exceeds the tax liability.
3. Tax abatements are reductions in the amount of tax that is owed. They may be granted for a variety of reasons, including financial hardship or natural disasters.
4. Tax deferrals allow taxpayers to postpone the payment of taxes. This can be helpful if the taxpayer is facing a financial hardship or is unable to pay the taxes when they are due.
5. Tax exemptions exempt taxpayers from paying taxes on certain types of income. They are available for a variety of reasons, including being a senior citizen, being a veteran, or having low income.
1. Tax deductions
2. Tax credits
3. Tax abatements
4. Tax deferrals
5. Tax exemptions
1. Tax deductions reduce the amount of income that is subject to taxation. They are available for a variety of expenses, including home mortgage interest, charitable donations, and business expenses.
2. Tax credits lower the amount of tax that is owed. They may be refundable, meaning that the taxpayer may receive a refund if the credit exceeds the tax liability.
3. Tax abatements are reductions in the amount of tax that is owed. They may be granted for a variety of reasons, including financial hardship or natural disasters.
4. Tax deferrals allow taxpayers to postpone the payment of taxes. This can be helpful if the taxpayer is facing a financial hardship or is unable to pay the taxes when they are due.
5. Tax exemptions exempt taxpayers from paying taxes on certain types of income. They are available for a variety of reasons, including being a senior citizen, being a veteran, or having low income.
