Taxation is a must in any country as this is how the nation survives. Under the U.S. system, citizens are allowed to reduce their taxable income for both business and individual expenditures. This action is known as deduction. Businesses selling goods decrease gross income directly by the cost of goods sold. In addition, businesses may subtract most types of expenses incurred in the business. Individuals too are also allowed to benefit from tax deductions and credits. Some of these deductions are subject to restrictions and there are certain eligibility criteria that are necessary to get these deductions. Many of these deductions help to put some extra cash in the pockets of individuals’ and businesses alike. Here is a list of deductions and credits.