- Days left

Ask the Dolans: What is the difference between a tax credit and a tax deduction?

Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.

Click here to ask Ken and Daria your question.

Everyone looks forward to tax season about as much as getting a tooth pulled ... without the anesthesia. It's almost like the IRS went out of their way to make tax rules as confusing as possible to keep you from saving money.

An important distinction you'll want to be aware of is the difference between a tax credit and a tax deduction, especially this year. One is definitely better for your total tax bill. Do you know which one it is? Watch below to find out.

Dear Ken and Daria,

What is the difference between a tax credit and a tax deduction?

-Jeff




Ken and Daria help you lower your taxes with tips for finding deductions where you may not think to look. Find this guide exclusively at Dolans.com.

Increase your money and finance knowledge from home

Economics 101

Intro to economics. But fun.

View Course »

Building Credit from Scratch

Start building credit...now.

View Course »

TurboTax Articles

Deducting Mortgage Interest FAQs

If you're a homeowner, you probably qualify for a deduction on your home mortgage interest. The tax deduction also applies if you pay interest on a condominium, cooperative, mobile home, boat or recreational vehicle used as a residence.

What Extra Tax Deductions Should I Make Sure To Take?

The federal government offers tax deductions and credits to reduce taxable income under certain circumstances. There are several that are often overlooked, including deductions for job hunting, caregiver expenses for dependents and children while you work, a credit to reduce taxes for moderate- to low-income earners and the premium tax credit associated with the Affordable Care Act. TurboTax can help determine if you qualify for these credits and deductions.

Fatten Your Paycheck and Still Get a Tax Refund

If you usually get a tax refund, but would like to start putting more money in your pocket every month, we can help. Yes, you still have to fill out a W-4 form. But we've developed a quick and easy guide to assist you.

Add a Comment

*0 / 3000 Character Maximum