Understanding Tax Deductions and Tax Credits

Reported 3 days ago

As the tax deadline approaches, it's important to know how tax deductions and tax credits differ. Tax deductions reduce your taxable income, allowing for options like the standard deduction or itemizing based on expenses, while tax credits reduce the amount of tax owed directly. Deductions can include charitable donations and mortgage interest, while tax credits can be for education, children, and energy efficiency. Keeping track of expenses and consulting with an accountant can help maximize these benefits.

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