Want to pay less in taxes?
If you’d like to pay less in taxes then you need to know about tax credits.
A tax credit reduces what you owe in taxes by the full amount of the credit itself (a tax deduction works differently, we’ll cover that next week). So if you owed $2,500 in taxes and you’re eligible for a $500 tax credit you would only owe $2,000 in taxes after claiming the credit. Tax credits can seriously reduce the amount of taxes you owe.
How do you find these tax credits and which ones can you claim? We’ve got that information for you right here.