Which of the following is typically included in deductions?

The correct answer relates to deductions that are often taken from gross income for tax purposes. Federal and state income taxes are categorized as mandatory deductions because they represent amounts withheld by employers or directly paid by individuals to the government. These taxes are calculated based on an individual's income level and are intended to fund various public services and programs.

Deductions can lower taxable income, which consequently reduces the total tax liability. While some expenses like rent or mortgage payments, entertainment expenses, and grocery bills are significant personal expenditures, they do not usually qualify as deductions for tax purposes. Only certain expenses, like state and federal income taxes, are recognized as deductions by the IRS, which is why this answer is accurate in the context of the question regarding what is typically included in deductions.