Health insurance for a contractor

  • #26
Math Is Hard
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What's the difference in a tax credit and a tax deduction?
 
  • #27
Ivan Seeking
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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.
 
  • #28
Ivan Seeking
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If you do become a contractor, we need to talk about deductions for business use of your home. You can do quite well if you do things the right way. :biggrin:
 

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