Tax Deductions & Tax Credits
What’s the difference between a tax deduction and a tax credit?
A tax credit reduces the tax you owe, and the amount of the tax credit is subtracted from your tax liability. A tax deduction reduces your taxable income amount which may positively impact your taxable income bracket.
Tax credits and deductions may vary year to year, and its important consult with your tax advisor to determine what credits are best based on your income level. Consider researching the following tax credits and deductions.