Federal tax credits and deductions both reduce the amount of tax you owe on your tax return, but the way the tax savings is calculated is very different. Tax deductions reduce the amount of your taxable income, whereas tax credits are directly applied against the tax you owe. Credits can reduce the amount of tax...
The post What Is a Tax Credit vs Deduction? Difference & Calculation appeared first on Fit Small Business.
* This article was originally published here
* This article was originally published here
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