 Knowledge is power, and when it comes to taxes, it’s also money in your pocket. Understanding the difference between tax deductions and tax credits can save you serious cash. So, let’s break it down. |
 Tax deductions are expenses that you can deduct from your taxable income, reducing the amount of taxes you owe. Common deductions include business travel, office supplies, and employee salaries. For example, if you earned $50,000 and deducted $20,000 in expenses, your taxable income would be reduced to $30,000, resulting in lower taxes. On the other hand, tax credits directly reduce the amount of tax you owe. If you owe $5,000 in taxes and have a $1,000 tax credit, you would only owe $4,000.There are various tax credits available such as… -The Research and Development Tax Credit, -Child Tax Credit, -Employee Retention Credit.Each credit has its own rules and qualifications, but we’re here to help ensure you take advantage of every credit you’re eligible for. By utilizing both deductions and credits, you can significantly reduce your tax bill and keep more of your hard-earned money. Don’t let taxes be boring – with a little education, you can save thousands of dollars every year. Let us help you keep more money in your pocket.Schedule a Call Now |