What is a Tax Credit

What is a Tax Credit

This is extremely simple.

The best way to remember what a Tax Credit is:

 


Tax Credit - a dollar for dollar reduction of your tax liability.
**This is NOT a Tax Deduction. **

 

Let's try an example:

Let's say you owe $1000 in taxes. You have $1000 in Tax credits. If you use all your tax credits. You don't have to pay anything.

Zero...

 

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