There are many tax credits and deductions available to tax filers every year. Some credits and deductions only last a few years while others stay around a decade or more while seeing year-to-year tweaks in their rules.
A tax credit will specifically reduce the amount of money you owe to the IRS dollar for dollar. A tax deduction will reduce your taxable income thus enabling you to wittle down your tax filer status on the income tax brackets totem pole down into a slimmer category so that your money is taxed at a lower tax rate than it really should be.
The thing with tax credits and deductions is that every year people seem to overlook them. Continue reading to look at the most common tax credits.
Page 2: Child Tax Credit >>
Page 3: Earned Income Credit >>
Page 4: American Opportunity Credit >>
Page 5: Energy Tax Credit >>
Page 6: Mileage Tax Deduction >>
Page 7: Medical Expense Deduction >>
Page 8: Alternative Fuel Tax Credit >>