Listen to a Business English Dialogue About Tax deduction
Nicholas: Hey Morgan, do you know what a tax deduction is?
Morgan: Yes, Nicholas. A tax deduction is an expense that you can subtract from your taxable income, reducing the amount of income tax you owe.
Nicholas: Right. So, for example, if I have $10,000 in taxable income and a $2,000 tax deduction, I would only pay taxes on $8,000?
Morgan: Exactly. Tax deductions help individuals and businesses lower their tax liability by reducing their taxable income. They can include expenses like mortgage interest, charitable contributions, and business expenses.
