PTIN Seal

Taxes - My Tax Return

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Taxes - My Tax Return
  4. What's the difference between a credit and a deduction?

What's the difference between a credit and a deduction?

Credits reduce your income tax dollar for dollar. Deductions reduce your taxable income which is then taxed at a specific rate. $1000 of deductions at the 15% bracket is only worth $150. Therefore credits are more powerful than deductions.

Need Professional Help?

If you need help with "Taxes - My Tax Return" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.