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What is the difference between tax credit and tax union

User Susitha
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1 Answer

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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! ;)

User Paul Nibin
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