What Is The Difference Between Tax Deduction vs Tax Credit

What Is The Difference Between Tax Deduction vs Tax Credit

Deductions can reduce the amount of income before calculating the tax owed. Credits can reduce the amount of tax owed or increase the refund amount. Certain credits may give a refund even if no tax is owed. Some common tax credits for individuals include:
  1. Child Tax Credit
  2. Earned Income Tax Credit
  3. Credit for Other Dependents
  4. Adoption Credit
  5. Low-Income Housing Credit
  6. Premium Tax Credit (Affordable Care Act)
  7. American Opportunity Credit
  8. Lifetime Learning Credit