TAX DEDUCTIONS & CREDITS: KNOWING THE DIFFERENCE

Posted by at 10:49 am 99 Comments Print

This may seem obvious to some but there is much confusion over the difference between a tax “deduction” and a tax “credit”. A tax deduction gets subtracted from your taxable income, which in turn lowers your taxable income, which lowers your taxes.

For example, if you have $50,000 income and a $5,000 deduction, your taxable income is $45,000.  So you are not going to pay tax on $5,000 of your income.  In a 30% tax bracket you would save $1,500 (which is 15% of $5,000) Now, let’s take the same example but this time with a $5,000 tax credit.  The income tax on $50,000 would be $15,000 (in a 30% tax bracket).   With a $5,000 tax “credit”, you would subtract that $5,000 from your $15,000 tax bill and pay only $10,000 in taxes. Obviously, a tax credit is more beneficial than a deduction.

 

BLOG READY TAXES , , , , , ,

Related Posts

99 Comments


  1. minecraft, 4 months ago

    This is really interesting, You’re an excessively professional blogger.
    I have joined your feed and sit up for in search of more of your excellent post.

    Additionally, I have shared your web site in my social networks


  2. minecraft, 4 months ago

    Fascinating blog! Is your theme custom made or did you download it from somewhere?

    A theme like yours with a few simple tweeks would really make my blog stand out.

    Please let me know where you got your theme.
    With thanks


  3. minecraft, 4 months ago

    Simply desire to say your article is as amazing. The clarity in your post is just spectacular and i could assume you are an expert in this subject.
    Well along with your permission let me to clutch your feed to stay up to date
    with imminent post. Thanks a million and please carry on the rewarding work.


  4. minecraft, 4 months ago

    I’m gone to inform my little brother, that he should also
    pay a visit this blog on regular basis to take updated from most up-to-date reports.


  5. minecraft, 4 months ago

    I seriously love your blog.. Excellent colors & theme.
    Did you create this web site yourself? Please reply back as
    I’m planning to create my own personal blog and would love to know where you got this from or just what the theme is named.
    Thank you!


  6. minecraft, 4 months ago

    Article writing is also a excitement, if you be acquainted with afterward you can write if not it is complex to write.


  7. minecraft, 4 months ago

    Fantastic beat ! I wish to apprentice while you amend your web site, how
    could i subscribe for a blog site? The account helped me a acceptable deal.
    I had been tiny bit acquainted of this your broadcast offered bright clear idea


  8. minecraft, 4 months ago

    My family members every time say that I am wasting my time here at net,
    except I know I am getting knowledge everyday by reading thes nice posts.


  9. minecraft, 4 months ago

    Hello to all, the contents present at this website are truly amazing for people knowledge, well, keep up the
    nice work fellows.


  10. minecraft, 4 months ago

    Sweet blog! I found it while browsing on Yahoo News. Do you have any
    suggestions on how to get listed in Yahoo News?

    I’ve been trying for a while but I never seem to get there!
    Cheers


  11. minecraft free download 2018, 4 months ago

    Definitely imagine that that you stated. Your favourite
    reason seemed to be on the internet the simplest factor to
    be aware of. I say to you, I definitely get irked while folks think about concerns that they just don’t
    recognize about. You controlled to hit the nail upon the top and outlined out the
    whole thing with no need side effect , other people could take a signal.
    Will likely be back to get more. Thank you


  12. minecraft free download 2018, 4 months ago

    What’s up, every time i used to check web site posts here in the early hours in the
    break of day, for the reason that i enjoy to learn more and more.


  13. minecraft free download 2018, 4 months ago

    I like the helpful info you provide on your articles. I’ll bookmark your weblog and test once more here
    regularly. I am slightly sure I’ll learn many new stuff right here!
    Best of luck for the next!


  14. minecraft free download 2018, 4 months ago

    Hi there! I could have sworn I’ve been to this blog before but after reading through some of the
    post I realized it’s new to me. Anyways, I’m definitely happy
    I found it and I’ll be book-marking and checking back often!


  15. minecraft free download 2018, 4 months ago

    I enjoy what you guys tend to be up too. This kind of clever work and coverage!
    Keep up the excellent works guys I’ve included you guys to our blogroll.


  16. minecraft free download 2018, 4 months ago

    bookmarked!!, I love your blog!


  17. minecraft free download 2018, 4 months ago

    Oh my goodness! Amazing article dude! Many thanks,
    However I am going through difficulties with your RSS.
    I don’t understand the reason why I am unable to subscribe to it.
    Is there anybody having similar RSS problems? Anyone who knows the solution will you kindly respond?
    Thanx!!


  18. minecraft free download 2018, 4 months ago

    Every weekend i used to pay a visit this site, as i wish for enjoyment,
    since this this website conations truly fastidious funny stuff
    too.


  19. minecraft free download 2018, 4 months ago

    Hey There. I found your blog using msn. This is an extremely well written article.
    I will be sure to bookmark it and return to read more of your useful info.

    Thanks for the post. I’ll certainly comeback.


  20. minecraft free download 2018, 4 months ago

    Hey would you mind stating which blog platform you’re working with?
    I’m looking to start my own blog soon but I’m having a hard time deciding between BlogEngine/Wordpress/B2evolution and
    Drupal. The reason I ask is because your layout seems different then most blogs and I’m looking for
    something unique. P.S Sorry for being off-topic but I had to
    ask!


  21. minecraft free download 2018, 4 months ago

    I every time spent my half an hour to read this website’s
    content daily along with a cup of coffee.


  22. tinder dating site, 4 months ago

    Hello there, I believe your site could possibly be having
    browser compatibility problems. Whenever I look at your blog
    in Safari, it looks fine however when opening in Internet
    Explorer, it has some overlapping issues. I merely wanted
    to give you a quick heads up! Apart from that, excellent website!


  23. tinder dating site, 4 months ago

    It’s amazing to pay a quick visit this site and reading the views of all colleagues on the topic of this post,
    while I am also eager of getting familiarity.


  24. minecraft secret free download, 4 months ago

    Hi, after reading this awesome article i am also glad to share
    my familiarity here with friends.


  25. Health Benefits of Coconut Oil, 4 months ago

    Normally I don’t read article on blogs, however I would like to say that this write-up
    very forced me to try and do it! Your writing taste has been surprised me.
    Thank you, very great post.


  26. Health Benefits of Coconut Oil, 4 months ago

    hello there and thank you for your information – I’ve definitely picked up something
    new from right here. I did however expertise several technical
    points using this website, as I experienced to reload the web site many times previous
    to I could get it to load properly. I had been wondering if your hosting is OK?

    Not that I’m complaining, but slow loading instances times will very frequently affect your placement in google and can damage your high-quality score if advertising and marketing
    with Adwords. Anyway I’m adding this RSS to my e-mail and could look out for a lot more of your respective interesting content.
    Ensure that you update this again soon.


  27. Coconut Oil Benefits, 4 months ago

    Ridiculous story there. What occurred after? Good luck!


  28. Benefits of Coconut Oil, 4 months ago

    I don’t even know how I ended up here, but I thought this post was great.
    I don’t know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!


  29. Health Benefits of Coconut Oil, 4 months ago

    Great beat ! I would like to apprentice while you amend your website, how could i subscribe for a blog site?
    The account helped me a appropriate deal. I had been tiny
    bit acquainted of this your broadcast provided vivid clear
    concept


  30. Coconut Oil Benefits, 4 months ago

    Amazing! Its really remarkable post, I have got much clear idea concerning from this paragraph.


  31. Health Benefits of Coconut Oil, 4 months ago

    Good article! We are linking to this particularly great article on our website.
    Keep up the great writing.


  32. Benefits of Coconut Oil, 4 months ago

    I have read so many articles regarding the blogger lovers except this article
    is truly a good piece of writing, keep it up.


  33. Health Benefits of Coconut Oil, 4 months ago

    Hello there, I discovered your web site by way of Google at the same time as searching for a related topic, your web site got here up, it looks great.

    I’ve bookmarked it in my google bookmarks.
    Hi there, simply became alert to your weblog via Google,
    and located that it’s truly informative. I am going to
    watch out for brussels. I’ll be grateful for those
    who continue this in future. Many other folks can be benefited out of your
    writing. Cheers!


  34. Coconut Oil, 4 months ago

    Pretty section of content. I just stumbled upon your site and in accession capital to assert that I
    acquire in fact enjoyed account your blog posts. Anyway I
    will be subscribing to your feeds and even I achievement you access consistently fast.


  35. Coconut Oil Benefits, 4 months ago

    I always spent my half an hour to read this webpage’s articles or reviews daily along with a cup
    of coffee.


  36. Health Benefits of Coconut Oil, 3 months ago

    This blog was… how do you say it? Relevant!!

    Finally I have found something that helped me.

    Appreciate it!


  37. Health Benefits of Coconut Oil, 3 months ago

    This is my first time go to see at here and i am really pleassant to read everthing at one place.


  38. Coconut Oil Benefits, 3 months ago

    Hey there! Someone in my Myspace group shared this website with us
    so I came to look it over. I’m definitely enjoying the information. I’m
    book-marking and will be tweeting this to my followers!
    Excellent blog and outstanding design and style.


  39. Coconut Oil, 3 months ago

    I am actually thankful to the holder of this web site who has
    shared this enormous article at here.


  40. Coconut Oil Benefits, 3 months ago

    I am no longer certain the place you are getting your info,
    but good topic. I must spend a while finding out much
    more or figuring out more. Thank you for wonderful info I used
    to be searching for this info for my mission.


  41. Health Benefits of Coconut Oil, 3 months ago

    Hello, the whole thing is going nicely here and ofcourse every one is sharing information, that’s in fact fine,
    keep up writing.


  42. Coconut Oil Benefits, 3 months ago

    If you are going for most excellent contents like me, simply visit this website everyday because it presents quality contents, thanks


  43. Benefits of Coconut Oil, 3 months ago

    Nice post. I used to be checking constantly this weblog and I am inspired!
    Extremely helpful information specially the ultimate phase :
    ) I take care of such information a lot. I used to be seeking this certain info for a very long time.
    Thanks and good luck.


  44. Benefits of Coconut Oil, 3 months ago

    I’m extremely impressed with your writing skills and also with the
    layout on your blog. Is this a paid theme or did you customize it yourself?
    Anyway keep up the excellent quality writing, it is rare to see a nice blog like this one these days.


  45. descargar facebook, 3 months ago

    Howdy! This is my first comment here so I just wanted
    to give a quick shout out and tell you I really enjoy reading your
    articles. Can you suggest any other blogs/websites/forums that deal with the same topics?
    Thanks!


  46. quest bars cheap, 3 months ago

    Hi there to every body, it’s my first go to see of this blog; this blog consists of
    remarkable and in fact excellent information in support of visitors.


  47. quest bars cheap, 3 months ago

    Hi there just wanted to give you a quick heads up. The words
    in your post seem to be running off the screen in Opera.
    I’m not sure if this is a formatting issue or something to do with internet browser compatibility but I figured I’d post to let you know.
    The design look great though! Hope you get the
    problem fixed soon. Cheers


  48. quest bars cheap, 3 months ago

    Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544 quest bars cheap
    Hey! Someone in my Myspace group shared this website with us so I came to look it over.
    I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my followers!
    Fantastic blog and amazing style and design. Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544 quest bars cheap


  49. quest bars, 3 months ago

    I was curious if you ever thought of changing the
    layout of your website? Its very well written; I love what youve got to
    say. But maybe you could a little more in the way
    of content so people could connect with it better.
    Youve got an awful lot of text for only having one or 2 pictures.
    Maybe you could space it out better?


  50. Quest Protein Bars, 3 months ago

    Hello! I’ve been reading your weblog for some time now and finally got the bravery to go ahead and give
    you a shout out from Kingwood Tx! Just wanted to
    mention keep up the great work!


  51. Eficiencia energetica calentador electrico, 3 months ago

    Somos una empresa dedicada tanto a la reparación de equipos electrónicos del hogar como a instalaciones y reparaciones de antenas, porteros automáticos, videoporteros, averías de electricidad, domótica, etcétera. Además de esto debe tener claro que nuestra asistencia se realiza de forma inmediata y que esto, a comparación de otros, no hace que los gastos sean mayores. Otro aspecto que debe tener en cuenta es que al contactar con nosotros un técnico profesional será el que atenderá su caso y el cual de forma inmediata podrá ayudarle. Así mismo, y en el caso de que el reparar su electrodoméstico tome más tiempo y deba llevarse al centro técnico, debe saber que contamos con electrodomésticos de cortesía. Finalmente debe saber que nuestro equipo es completamente profesional y que por ello solo trabajamos con repuestos completamente originales. Puedes confiar en los frigorífiocs BOSCH para la conservación de tus alimentos.


  52. Quest Bars Cheap, 3 months ago

    Hi! Do you know if they make any plugins to protect against hackers?

    I’m kinda paranoid about losing everything I’ve worked hard on. Any tips?


  53. What Equipment is Needed for Sling TV, 3 months ago

    I’m not that much of a online reader to be honest but
    your sites really nice, keep it up! I’ll go ahead and bookmark your site
    to come back in the future. Cheers


  54. consumo energetico de aparatos electro domesticos para sorteo, 3 months ago

    Asistencia técnica para cualquier tipo de averias electronicas mecanicas en hornos a gas, hornos piroliticos, hornos a conveccion u hornos mixtos con microondas, vitroceramicas. REPARANDO sus electrodomésticos economizará al alargar la vida de los aparatos reparados cerca de un 80 además de colaborar con la mejora del MEDIOAMBIENTE al no precisar de nuevos metales, gomas, plásticos, vidrios, embalajes etc. MADRID OESTE: Majadahonda, Las Rozas, Las Matas, Torrelodones, Collado Villaba, Boadilla del Monte, Villalba Galapagar, Alcorcon, Móstoles. NOTA: () se cobra el desplazamiento de ida y vuelta a partir de 20 km. y como punto de inicio es el km 0 de la puerta del sol de Madrid.


  55. historia de energia segun electro domesticos, 3 months ago

    Yo envié un teléfono hace ya más de un año porque tenía manchas en la pantalla, y me contestaron diciendo que como tenía un rascazo en la tapa trasera eso es que se había caído y había producido las manchas de la pantalla… alucinante pero cierto, sobretodo porque ese rascazo se lo hice casi el primer día y estuve más de un año con él hasta que aparecieron las manchas.


  56. consumo delos electrodomesticos en kwhi, 3 months ago

    El frigorífico es uno de los pocos electrodomésticos que están conectados las 24 horas del día, y gracias a este electrodoméstico conservamos los alimentos y disfrutamos de la bebida fría. Si cuenta con un equipo de aire acondicionado es recomendable que lo mantenga en buenas condiciones para que el aire que nos acondiciona siga siendo de la mejor calidad. Para mantenerlo en buenas condiciones contrate los servicios de una empresa de reparacion aire acondicionado al menos una vez al años. Servicio de calefacción: La caldera es el único de los tres que se usa para calefacción y agua caliente sanitaria. Protégete del calor son el servicio de instalación de aire acondicionado al mejor precio y con garantía.


  57. accesorios de acero inoxidable para dama, 3 months ago

    Los mejores sistemas de automatismo industrial del mercado, para que los trabajos y las necesidades de nuestros clientes sean cubiertos con la mejor calidad y en base a la mejor efectividad posible. El fresado consiste en hacer pulir agujeros mediante el movimiento de una herramienta rotativa de varios filos de corte denominada fresa (que es la que hace el movimiento de corte, mientras que la pieza hace el movimiento de avance, fijada sobre la mesa).


  58. Sling TV, 3 months ago

    With havin so much content and articles do you ever run into any issues of plagorism
    or copyright infringement? My website has a lot of completely unique content I’ve either authored myself
    or outsourced but it seems a lot of it is popping it up all over
    the internet without my permission. Do you know any
    techniques to help reduce content from being stolen? I’d really appreciate it.


  59. proceso de fundición de acero, 3 months ago

    Los mejores sistemas de automatismo industrial del mercado, para que los trabajos y las necesidades de nuestros clientes sean cubiertos con la mejor calidad y en base a la mejor efectividad posible. El fresado consiste en hacer pulir agujeros mediante el movimiento de una herramienta rotativa de varios filos de corte denominada fresa (que es la que hace el movimiento de corte, mientras que la pieza hace el movimiento de avance, fijada sobre la mesa).


  60. Sling TV, 3 months ago

    Fastidious answer back in return of this difficulty with real arguments and telling everything on the
    topic of that.


  61. What Equipment is Needed for Sling TV, 3 months ago

    Somebody necessarily assist to make critically posts I would
    state. This is the first time I frequented your web page and so far?
    I surprised with the analysis you made to create this actual submit amazing.
    Wonderful process!


  62. What Equipment is Needed for Sling TV, 3 months ago

    Hi there, You have done a great job. I’ll certainly digg it and personally suggest to my
    friends. I am sure they’ll be benefited from this site.


  63. Sling TV, 3 months ago

    Hi! I just wanted to ask if you ever have any issues with
    hackers? My last blog (wordpress) was hacked and I ended up losing a few months of hard work due to no back up.
    Do you have any methods to protect against hackers?


  64. Sling TV, 3 months ago

    Do you mind if I quote a few of your posts as long as I provide credit and sources back to your weblog?

    My blog site is in the exact same area of interest as
    yours and my users would genuinely benefit from some of the
    information you provide here. Please let me know if
    this okay with you. Thanks a lot!


  65. Sling TV, 3 months ago

    I’m not that much of a internet reader to be honest but your blogs really nice, keep it up!
    I’ll go ahead and bookmark your website to come
    back down the road. All the best


  66. Sling TV, 3 months ago

    You really make it seem so easy with your presentation but
    I find this topic to be really something that I think
    I would never understand. It seems too complex and
    very broad for me. I am looking forward for your next post, I will try to get the hang
    of it!


  67. What Equipment is Needed for Sling TV, 3 months ago

    I am curious to find out what blog system you are working with?
    I’m having some minor security problems with my latest blog
    and I’d like to find something more risk-free.
    Do you have any suggestions?


  68. sling tv coupons and promo codes for november 2018, 3 months ago

    Sling tv coupons and promo codes for november 2018
    Wow that was odd. I just wrote an very long comment but after I clicked submit my comment didn’t appear.

    Grrrr… well I’m not writing all that over again. Anyway, just wanted to say superb blog!

    Sling tv coupons and promo codes for november 2018


  69. What Equipment is Needed for Sling TV, 3 months ago

    This is my first time go to see at here and
    i am truly impressed to read everthing at one place.


  70. What Equipment is Needed for Sling TV, 3 months ago

    I don’t even know how I ended up here, but I thought this post was good.
    I do not know who you are but definitely
    you are going to a famous blogger if you aren’t already 😉 Cheers!


  71. What Equipment is Needed for Sling TV, 3 months ago

    Hello my family member! I wish to say that this article is awesome, nice written and come with approximately all significant infos.
    I would like to see more posts like this .


  72. What Equipment is Needed for Sling TV, 3 months ago

    After going over a few of the articles on your site, I seriously appreciate your way of blogging.

    I saved it to my bookmark site list and will be checking
    back in the near future. Please visit my web site too and tell me your opinion.


  73. What Equipment is Needed for Sling TV, 3 months ago

    wonderful put up, very informative. I’m wondering
    why the other specialists of this sector do not realize this.

    You should continue your writing. I am sure,
    you’ve a great readers’ base already!


  74. What Equipment is Needed for Sling TV, 3 months ago

    Hey There. I discovered your blog using msn. This is a
    very smartly written article. I’ll be sure to bookmark it and come back to learn more of your useful info.
    Thanks for the post. I will certainly comeback.


  75. descargar facebook, 3 months ago

    Incredible! This blog looks exactly like my old one! It’s on a entirely different subject but it
    has pretty much the same layout and design. Superb choice of colors!


  76. 醫學美容 Zostavax 康柏苗 ( 蛇針 ), 3 months ago

    激光是單一波段的光能 , 在同一時間發射 , 光線能量較為集中 , 能深入皮膚打擊患處之異常色素或血管 , 溫和地刺激皮膚內的骨膠原更生, 新生的骨膠原令您的膚質光澤柔嫩 , 煥然一新 , 抗老效果顯著。有效治療色斑(雀斑 , 太陽斑 , 咖啡斑 , 太田痣 , 紋身) , 血管問題 (葡萄色斑 , 微絲血管擴張) , 膚色不均 , 皮膚鬆弛 , 毛孔粗大 治療後皮膚會出現短暫的紅腫 , 要注意防曬及遵照醫生指示護理皮膚


  77. Mirta Albright, 2 months ago

    Hi there troubleshooternetwork.com

    But the truth is when you use this formula, it becomes REALITY almost instantly!
    Keep on reading and pay close attention to what I’m about to reveal: You don’t need a product, list, domains, website, experience, or even MONEY to do it!

    This is how SIMPLE it is:
    1. Copy a listing from location A
    2. Paste it in location B & make $20-$80 every single time… You ALWAYS keep the profit!

    ANYONE Can Do This, Even Total Noobs
    Literally anyone can pick this up, implement the same day and see Real Results of this formula working VERY FAST, without
    working hard, spending a ton of Cash!
    You’ll be successful faster than you ever though was even possible.

    Is a brand new arbitrage formula – very few people know about it and even less are actually using it.
    We focus on an overlooked area when it comes to arbitrage – and it’s pretty crazy because EVERYONE wants these services.
    Anyone that does this makes an absolute killing – and there’s no end to how many customers you can have.

    If you’ve ever tried arbitrage, you know how POWERFUL it is…
    Regular evryday people that aren’t marketers have been using it for YEARS to make a steady online income… but if you think that you know the formula we’re revealing inside THIS FORMULA – think again!

    IF YOU’RE INTERESTED, CONTACT ME ==> getprofitonline@mail.com

    Regards, Mirta
    Germany, SH, Steinbergkirche, 24970, Hochstrasse 5


  78. descargar facebook, 2 months ago

    I am not sure where you’re getting your information, but great
    topic. I needs to spend some time learning much
    more or understanding more. Thanks for wonderful information I was looking for this info for
    my mission.


  79. Sling TV, 2 months ago

    I could not resist commenting. Exceptionally well written!


  80. Sling TV, 2 months ago

    I don’t know if it’s just me or if everyone else encountering issues with your site.

    It looks like some of the text within your posts are running off the screen. Can somebody else please provide feedback and let me know if this is happening to
    them too? This may be a issue with my web browser because I’ve had this happen before.
    Many thanks


  81. descargar facebook, 2 months ago

    Hello, Neat post. There’s a problem along with your site in internet explorer, may test this?
    IE still is the market leader and a large part of people will leave out
    your excellent writing because of this problem.


  82. SannyLeank, 2 months ago

    Nice website!

    ___
    Sanny


  83. descargar facebook, 2 months ago

    Does your website have a contact page? I’m having trouble locating it
    but, I’d like to send you an email. I’ve got
    some suggestions for your blog you might be
    interested in hearing. Either way, great website
    and I look forward to seeing it expand over time.


  84. Central london harley street Psychotherapist, 2 months ago

    Im obliged for the article post.Really thank you! Keep writing.


  85. Typicalcat, 1 month ago

    Hello. And Bye. https://www.journojames.org/















  86. Presupuesto Reparacion Electrodomesticos En Madrid ONLINE, 1 week ago

    Este coqueto y acogedor hotel con categoría de 3 estrellas compuesto de 7 plantas, está situado justo enfrente de la bahía del Port de Sóller. Cada aviso que recibimos para reparar una electrodomesticos es un reto para nosotros ya que sabemos que nuestro prestigio está en juego, y que respetamos al máximo a nuestros clientes ya que hemos llegado donde hemos llegado en este sector gracias a la confianza depositada por ustedes y la expansión de persona a persona de nuestro SERVICIO TÉCNICO DE REPARACIÓN DE electrodomesticos como el más efectivo, profesional y económico de Madrid y comunidad autónoma.


Post Your Comments

CALL US:

3 0 3 . M A R T I N O

EMAIL US:

Help@Troubleshooter.com

PHYSICAL ADDRESS:

4695 S Monaco St, Denver, CO 80237