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Deductions & credits
These are two different items on your return.
Residential Energy Credits are used to offset any tax liability dollar for dollar. For example, if you owe $500 in tax, but you have a credit of $400, your tax due will be reduced to $100 ($500-$400).
The standard deduction is used as a deduction to reduce your taxable income. Your taxable income is used to calculate your total tax liability based upon your tax rate.
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‎February 4, 2020
5:01 PM