what is a tax write off 
the internal revenue service irs allows individuals to claim a standard deduction on their income tax return and also itemize deductions if they exceed that level deductions reduce the adjusted gross income applied to a corresponding tax rate 1 tax credits may also be referred to as a type of write off because they are applied to taxes owed lowering the overall tax bill directly the irs allows businesses to write off a broad range of expenses that comprehensively reduce taxable profits 3