Understanding Tax Credits: A Handy Guide to Lowering Your Tax Bill

Reported 2 days ago

Tax credits provide an effective way to reduce your tax liability by directly subtracting from the tax owed to the IRS. Some credits are refundable, allowing you to receive a refund even if you owe no taxes. It's important to know the different types—nonrefundable, refundable, and partially refundable—and how to qualify based on your income. Popular tax credits include those for electric vehicles, children, educational expenses, and savings plans, each with specific eligibility requirements and limits.

Source: YAHOO

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