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|Dorothy in Taxland: Tax Credits (2010-06-21)
Dorothy in Taxland: Tax Credits (2010-06-21)
by David John Marotta
Tax credits are much more valuable than tax deductions. Deductions only reduce the amount you are taxed on. One dollar of deduction might only be worth 35 cents. In contrast, tax credits are a dollar-for-dollar reduction in your tax bill. And a refundable tax credit could mean the government will owe you money you never paid in the first place.
Read the complete column at http://www.emarotta.com/article.php?ID=396
David John Marotta
Marotta Asset Management, Inc.
Fee-only Financial Planning