asked 5.0k views
2 votes
What is the difference between tax credit and tax union

asked
User Susitha
by
8.2k points

1 Answer

7 votes

The big difference between tax deductions vs. tax credits is that deductions chip away at the income you'll pay taxes on, which then reduces your taxes, while credits directly reduce the amount of taxes you owe. Nonrefundable tax credits can't increase your tax refund — they can only reduce the amount you owe in taxes.

Hope this helps! ;)

answered
User Paul Nibin
by
8.3k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.