Question: From the reading in textbook this week we learn a lot about income taxes, filing status, and various considerations in setting up your taxes.

From the reading in textbook this week we learn a lot about income taxes, filing status, and various considerations in setting up your taxes.

Specifically, what is the difference between a deduction and a credit? Dollar for Dollar which is more beneficial on your taxes? What kinds of tax breaks are available for education?

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In the context of income taxes deductions and credits are both mechanisms that can help reduce your tax liability However they operate in different ways and have distinct effects on your tax return 1 ... View full answer

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