The Tuition and Fees deduction is not better. A credit is dollar for dollar, so is generally way better than a deduction.
A deduction reduces your taxable income. So, if your taxable income is $4000 less, you'll save:
$4000 * (your tax rate). Lets say your tax rate is 15%: you'll save $600. You do not save $4000, as a deduction is not a credit
An LLC saves you $2000 in taxes, as its a credit.
In this example, its $2000 for LLC vs just $600 in actual savings from the T&F.
The program wouldn't choose the LLC if it wasn't the better choice.
The Tuition and Fees deduction is not better. A credit is dollar for dollar, so is generally way better than a deduction.
A deduction reduces your taxable income. So, if your taxable income is $4000 less, you'll save:
$4000 * (your tax rate). Lets say your tax rate is 15%: you'll save $600. You do not save $4000, as a deduction is not a credit
An LLC saves you $2000 in taxes, as its a credit.
In this example, its $2000 for LLC vs just $600 in actual savings from the T&F.
The program wouldn't choose the LLC if it wasn't the better choice.