What are Tax Credits

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…

 

One thought on “What are Tax Credits

Leave a Reply