Tax Credits vs. Tax Deductions
What’s the difference between…
a) folk and bluegrass?
b) tax credits and tax deductions?
Headscratchers, I know.
a) I would have to say Bluegrass music makes my heel tap harder. Scientific, eh?
b) Credits reduce my tax $$ owed. Deductions reduce my taxable income.
Both tax credits and tax deductions are $$ savers. If we qualify for one, the other, or both depends on our financial situations.
I could delve deeper into the details, but I love this video too much. Watch and learn!
Thirsty for more knowledge, visit the IRS.
Happy Tax Time!
(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)