Math Is Hard
What's the difference in a tax credit and a tax deduction?
When you list a deduction, it reduces your total taxable income, so you may only get 12%-15% [when all is said and done] of the deduction as cash in your pocket. A tax credit is cash directly in your pocket. It is the amount by which your tax - not your taxable income - is reduced.What's the difference in a tax credit and a tax deduction?