3 Tax Credits You May Be Eligible for in 2023

3 Tax Credits You May Be Eligible for in 2023

A tax credit is a dollar for dollar reduction of your tax liability. It differs from a tax deduction, because what those do is simply exempt a portion of your income from taxes. If you claim a $1,000 tax credit, you lower your tax liability by $1,000 no matter what your effective tax rate is.