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Deductions & credits
No. It reduces your taxable income dollar for dollar. That means if you have taxable income of $10,000 and you contributed $1,000, you would now have taxable income of $9,000. Using the 10% tax rate, your $1,000 contribution would take your taxes from $1,000 to $900 a savings of $100 of taxes.
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‎April 23, 2025
10:38 AM