How Do Tax Credits Work? Understanding Your 1040 Tax Credits
Tax credits are the best of tax breaks. Deductions come off your income, reducing it so you pay taxes on less earnings, and that's a good thing. But tax credits subtract directly from your tax liability—what you owe the IRS. Their effect is the same as if you had made a payment of your hard-earned money to the IRS.
Original Article Source Credits: The Balance , https://www.thebalance.com/
Article Written By: William Perez
Original Article Posted on: October 31, 2020
Link to Original Article: https://www.thebalance.com/tax-credits-3193143