A) To directly reduce the amount of tax owed, dollar for dollar.
B) To decrease the amount of taxable income, thereby lowering the overall tax liability.
C) To defer tax payments until a later tax year.
D) To increase the amount of gross income reported to the government.
Explanation
Tax deductions reduce an individual's taxable income, which can lower the total amount of tax they owe. They are subtracted from gross income to arrive at adjusted gross income (AGI) or taxable income.
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