People are often confused about the difference between tax credits and deductions. Deductions reduce the amount of income that your taxes are based on. Credits go directly against the amount you owe in taxes. Some credits (like the Earned Income Tax Credit) are refundable, which means if a taxpayer owes less than the amount of the credit, they can receive the difference as a refund. Others, like the CLean Vehicle Tax Credit for electric vehicles are not. Still others, like the American Opportunity Tax Credit and the Child and Dependent Care Credit are partially refundable.
Contact us today to learn what tax credits and deductions you qualify for.