Tax Credits Deductions

Tax credits and deductions reduce what you owe the IRS, but they work differently and apply to different situations. A deduction lowers your taxable income, while a credit directly reduces your tax bill dollar-for-dollar. Knowing which ones you might use matters because missing them means paying more than you have to—and some credits are designed specifically for people in particular life circumstances, like raising children, going to school, or managing medical costs.

These articles explain how different credits and deductions work, who they're meant for, and what records or information you'll need when you file. You'll learn what changes your situation from year to year, how to figure out which ones actually apply to you, and what happens if you claim something you shouldn't.