There are basic deductions, which don't amount to a whole lot, and specialized ones. There are too many to list here, but one great example is the Schedule C form. If you have a small business, anything from a car washing service, babysitting, or a pet grooming clinic that you operate out of your garage (even a cookie baking enterprise!), you will end up having many more tax deductions that the normal person. These expenses may include electricity, tools, special clothes, equipment and so on - and will be recorded on the Schedule C. If you do some "job on the side", don't hide it from the IRS. Include it so you can lower your taxable income and be eligible for perks.