kerla33 kerla33
  • 09-11-2020
  • Mathematics
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What is the difference between a tax credit and a tax deduction?

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rascalmath
rascalmath rascalmath
  • 09-11-2020

Answer:

A deduction can only lower your taxable income and the tax rate that is used to calculate your tax. This can result in a larger refund of your withholding. A credit reduces your tax giving you a larger refund of your withholding, but certain tax credits can give you a refund even if you have no withholding.

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