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:
Child Tax Credit
Earned Income Tax Credit
Credit for Other Dependents
Adoption Credit
Low-Income Housing Credit
Premium Tax Credit (Affordable Care Act)
American Opportunity Credit
Lifetime Learning Credit
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