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Originally Posted by DivaJen
If I'm not mistaken, a tax deduction is money you subtract from your taxable income, while a tax credit is money you subtract directly from the amount of tax you owe.
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Yes, that is correct. So if you were in the 30% tax bracket, a tax deduction would be worth 30 cents for each dollar you were able to deduct while a tax credit woulod be worth one dollar for every dollar. So, a tax credit is more beneficial to you than a tax deduction.