How Do Tax Credits Work? Understanding Your 1040 Tax Credits

External Author |


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.

Read More

Original Article Source Credits:   The Balance ,

Article Written By:  William Perez 

Original Article Posted on:  October 31, 2020

Link to Original Article: