tax credits reduce your

Tax credits are a valuable tool that can directly reduce your tax liability, helping you save money when filing your taxes. Unlike tax deductions, which lower your taxable income, tax credits provide a dollar-for-dollar reduction in the amount of taxes owed. From education credits to energy-efficient home credits, various types of tax credits are available to individuals and businesses. By utilizing tax credits, you can lower your overall tax bill, increase your tax refund, and potentially qualify for additional savings. Understanding and applying these credits can lead to significant financial benefits.