Page 6 - Tax Credit and Deductions for Individuals
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TAX CREDITS & DEDUCTIONS: HANDBOOK 2020
/!\ HELPING CLIENTS TAX PLANNING EASY /!\
What is Tax Credit?
Subtract tax credits from the amount of tax you owe. There are two types
of tax credits:
1. A nonrefundable tax credit means you get a refund only upto the
amount you owe
2. A refundable tax credit means you get refunded, even if it’s more than
what you owe.
What is Tax Deduction?
Subtract tax deductions from your income before you figure the amount of
tax you owe.
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