PDF

Deductions lower your taxable income, while credits lower the tax you owe.

If you can take a $1,000 credit or a $1,000 deduction, choose the credit.

A credit cuts your tax bill by the full $1,000, while a deduction only saves part of it based on your tax rate.

Non-refundable credits still help by lowering what you owe, even if they don’t give you a cash refund.


Ask a followup question

Loading...