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What is the difference between a tax credit and a tax deduction?

User Jie Hart
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Answer:

A deduction can only lower your taxable income and the tax rate that is used to calculate your tax. This can result in a larger refund of your withholding. A credit reduces your tax giving you a larger refund of your withholding, but certain tax credits can give you a refund even if you have no withholding.

Explanation:

User Rashidah
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