Because individuals are always looking for tax deductions that can reduce their tax liability it’s important to know what the actual tax benefit is derived from a tax deduction.  There is no straightforward answer because some deductions are above the line, others must be itemized, some must exceed a threshold amount before being deductible, and certain ones are not deductible for alternative minimum tax purposes, while business deductions can offset both income and self-employment tax.  In other words, there are many factors to consider, and the tax benefits differ for each individual, depending on his or her particular situation and tax bracket. (more…)