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The Short Answer

Younger Workers: Don't Overlook These Tax Benefits

Many of these tax benefits phase out at higher income levels, but it could pay to check eligibility.

April 15 is fast approaching; it's a good time to familiarize yourself with tax deductions and credits. Though many of them phase out at higher income levels, take a look to see if you are eligible for any of them. It's also possible that applying deductions could reduce your modified adjusted gross income to a point where you might qualify for a tax benefit you otherwise wouldn't.

To better understand how these tax benefits work, it's important to note that some are deductions and some are expenses. Tax deductions reduce taxable income, and their value thus depends on the taxpayer's marginal tax rate, which rises with income. Factoring in the tax deduction reduces your taxable income, and ultimately reduces the amount of taxes you end up paying.