Examine potential tax deductions and credits on a tax return.
DefinitionExamination should include an explanation of the difference between a tax deduction and a tax credit and should identify potential tax deductions and credits on a tax return. Examples of deductions may include local taxes paid, interest on student loans, and charitable contributions. Possible tax credits may include the costs of energy-saving vehicles or home improvements.
Other Related Standards
Economics and Personal Finance Standards of Learning
The student will demonstrate knowledge of taxes by
- describing the types and purposes of local, state, and federal taxes and the way each is levied and used;
- exploring how tax structures affect consumers, producers, and business owners differently;
- computing local taxes on products and services;
- examining potential tax deductions and credits on a tax return;
- explaining the content and purpose of a standard W-2 form; and
- explaining the similarities and differences between state and federal taxation of inheritances.