tax

For the most part, there are two tools to reduce your income tax burden: credits and deductions. Credits count directly against your taxes owed. For example, a $200 credit can reduce your taxes owed by $200. Deductions (as discussed in another post) reduce your income that is subject to tax. For example, a $200 deduction…

Read More Tax Basics: Credits

Some of the biggest misconceptions in taxes come from deductions. People are told they can deduct this expense or that expense, but often find they cannot when it comes tax time. Exactly what is deductible depends on the type of deduction and what kinds of income you have. This post will hopefully clarify what is…

Read More Tax Basics: Deductions