The Difference Between Tax Credits and Tax Deductions
“The only things certain in life are death and taxes.” ~ Benjamin Franklin
Nobody likes filing taxes. With another tax season complete, many people are still waiting to hear from the tax man. It is safe to assume that there are millions that are unaware of the obligations and responsibilities of their employers, regarding deducting income tax. As well, many may not know what they can do to reduce their tax liability.
It seems as though I am asked this question a few dozen times per year:
What’s the difference between Tax Credits and Tax Deductions?
Hopefully the infographic below can help illustrate the difference between the two.
Plan ahead and you can save yourself from an inconvenient, avoidable tax bill at year end.