What's the Difference? Tax Deductions vs. Tax Credits

Tax deductions and tax credits reduce your tax liability, but they do so in different ways. The good news? Both help you save money at tax time. Even better news? You don’t have to choose one or the other. Take as many deductions and credits as possible for your tax situation. Test your knowledge of the two here! Share your results on www.libertytax.com/tax-lounge/

Lady Liberty
Created by Lady Liberty
On Jan 22, 2016
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Tax Credits are valued as a percentage of your tax bracket.

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If your tax credit is $1,000, you'll save $1,000 on your tax return.

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Non-refundable Tax Credits cannot reduce your tax liability below zero.

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You must choose between tax deductions OR tax credits

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You can choose between standard deductions and _____ deductions.

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Deductions lower your taxable _____.

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