“If you’re eager to slash your tax bill, two popular methods are claiming credits and deductions on your return. While both can reduce your balance, these write-offs have key differences, which ultimately affect your bottom line.
Credits lessen your liability on a dollar-for-dollar basis, whereas deductions reduce income subject to tax, said certified financial planner Judson Meinhart, manager of financial planning at Parsec Financial in Winston-Salem, North Carolina.”
