Extra CreditSearching for more tax savings? An ounce of credit can be worth a pound of deductions.
ByJoan Szabo•
Opinions expressed by Entrepreneur contributors are their own.
Getting credit when credit is due is alwayssatisfying--especially if you're calculating your federal taxliability. While tallying up tax deductions trims your tax bill,earning tax credits saves you even more.
"A dollar's worth of tax credit reduces your tax billby one dollar, but a dollar's worth of deductions [only] lowersyour tax bill by whatever percent your tax bracket is. Ifyou're in the 28 percent tax bracket, for example, a taxdeduction saves you 28 cents,' explains Susan Jacksack, asmall-business analyst with CCH Inc., a Riverwoods, Illinois,provider of legal, tax and business information.
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