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4 most common tax credits
Source:
ksdk.com
- Feb 3, 2017
Tax deductions are always useful, but tax credits are even more so. Deductions only reduce your taxable income, while credits are subtracted directly from your tax bill.
In the case of refundable tax credits, you may even be eligible for a refund beyond the amount of taxes that you pay. Non-refundable tax credits cannot be redeemed beyond the amount of tax you paid in – in other words, you can’t get a refund larger than the taxes that you owe.
Credits are taken in lines 48 to 54 of Form 1040, and lines 31 to 35 and 42 to 45 of Form 1040A. The instructions for these IRS forms covers eligibility for each of these credits, but we will go over some of the more popular ones in detail.
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Category: General Business
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