Chapter 16
Giving Credits Where Credits Are Due
IN THIS CHAPTER
Finding your way around the credit for child- and dependent-care expenses
Understanding credit for the elderly and disabled
Educating yourself about education and child tax credits
Crediting certain contributions to retirement savings
Profiting from the Residential Energy Credit and the Alternative Motor Vehicle Credit
Adopting the adoption credit and calculating the earned income credit
To paraphrase Rudyard Kipling, a deduction is only a deduction, but a good tax credit can mean real cash in your pocket. Tax credits are a dollar-for-dollar reduction of tax, unlike deductions, which reduce only taxable income. The results to your personal bottom line as you wend your way toward the end of your Form 1040 may be spectacular.
Just like deductions, credits are designed to promote certain social policies, like raising children, ...
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