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Deductions & credits
Yes you are correct. You can subtract Tax Credits from the amount of tax you owe. As opposed to a Tax Deduction that will reduce your income before you figure the amount of tax you owe.
A deduction will reduce your tax by reducing the amount of money you are being taxed on.
A Credit will actually reduce the tax. In some cases it will generate a refund.
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‎February 8, 2021
9:29 AM