10/16/2026
Tax credits vs. tax deductions can feel confusing, but here’s an easy way to think about it.
A deduction lowers the amount of income the IRS uses to calculate your taxes—kind of like shrinking the size of the bill before it’s totaled. A credit, on the other hand, directly reduces the tax you owe, almost like applying a coupon at checkout.
Both can help, but they work in different ways. The best part? You don’t have to figure it out alone. A tax professional can help you understand what may apply to your situation.
This is general information only and not tax advice.
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