There are several common ways that over-emphasizing deductions may reduce your tax bill, but actually cost you more money than you save. Kahler: Some even rejecting income to avoid a higher tax bracket. A couple with a taxable income of $81,050 is in the 12% tax bracket. For example, a young married couple with a taxable income of $19,900 is in the 10% tax bracket. Tax deductions only make sense if you actually need or want to spend money for deductible items like property taxes, interest, charitable giving or necessary business expenses.

Source: Forbes April 17, 2021 12:56 UTC