While the IRS expects you to pay what you owe each April, there are ways to reduce your total tax liability. The government allows taxpayers to claim tax credits and tax deductions that will ease their financial burdens when tax season rolls around. Do you know the difference between credits and deductions?
Tax deductions are subtracted from your taxable income. These are often expenses that you’ve incurred over the course of the year related to your business and your health. Donations to qualified charities are also tax deductible. By reducing your taxable income, deductions lower the total amount you’ll owe the IRS.
Tax credits, meanwhile, are removed directly from the taxes you owe, lowering your tax burden dollar for dollar. The government offers tax credits related to education, adoption, child care, and more. There’s even a tax credit for improving your home to make it more energy efficient.
In order to make sure you’re taking advantage of all of the tax deductions and credits that apply to your financial situation, get in touch with Taxation Solutions, Inc. today. We’re the Arlington area’s best choice for tax help, striving to keep you IRS compliant while also securing the best possible results in all of your dealings with the IRS. We’re standing by to guide you forward!