{"id":1158,"date":"2018-01-25T19:21:51","date_gmt":"2018-01-26T00:21:51","guid":{"rendered":"https:\/\/www.etax.com\/blog\/?p=1158"},"modified":"2019-07-15T15:29:01","modified_gmt":"2019-07-15T19:29:01","slug":"tax-credits-vs-tax-deductions","status":"publish","type":"post","link":"https:\/\/www.etax.com\/blog\/2018\/01\/25\/tax-credits-vs-tax-deductions\/","title":{"rendered":"Tax Credits vs. Tax Deductions"},"content":{"rendered":"<p class=\"p2\"><span class=\"s2\">Tax credits and deductions are two different beasts. Tax credits are seen as the better of the two, however both can save you money when you file your taxes. <\/span><\/p>\n<p class=\"p2\"><span class=\"s2\">Deductions reduce the amount of income that is subject to taxes. For example, if your earned income was $65,000 and you claimed $15,000 in deductions, then the IRS would only tax $50,000. This is a great way to save money, and you should claim as many deductions as you are eligible for. <\/span><\/p>\n<p class=\"p2\"><span class=\"s2\">Tax credits take away from the amount you owe the IRS. Unlike deductions, they don\u2019t come off your income, and instead reduce your take liability dollar for dollar. Let\u2019s say you\u2019ve completed your tax return and owe the IRS $2,000. However, you\u2019ve discovered that you\u2019re entitled to claim a $2,000 tax credit. Just like that, your tax debt becomes zero. Once you claim the credit, you\u2019ll be in the clear with the IRS and won\u2019t owe a penny. If you discovered you owe $3,000 and can claim that $2,000 tax credit, you\u2019ll only be responsible to pay $1,000, the difference between what\u2019s owed and the credit. And some credits are refundable, meaning the IRS may owe you! Be sure to check that you\u2019ve claimed all <a href=\"https:\/\/www.etax.com\/support\/help-center\/#deductions\">credits and deductions<\/a> to maximize your tax time savings! <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax credits and deductions are two different beasts. Tax credits are seen as the better of the two, however both can save you money when you file your taxes. Deductions reduce the amount of income that is subject to taxes. For example, if your earned income was $65,000 and you claimed $15,000 in deductions, then [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1502,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[72,354],"class_list":["post-1158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credits-2","tag-tax-credits","tag-tax-deductions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax Credits vs. Tax Deductions - eTax.com\u00ae Blog<\/title>\n<meta name=\"description\" content=\"Tax credits and tax deductions are two different beasts, however, both can save you significant money when you file your taxes.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.etax.com\/blog\/2018\/01\/25\/tax-credits-vs-tax-deductions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax Credits vs. Tax Deductions - 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