what is the difference between a tax credit and a tax deduction 
tax credits lower the amount of tax you owe while tax deductions reduce your taxable income both save you money on your tax bill but credits provide the most substantial savings 3for example a 1 000 tax credit lowers your tax bill by that same 1 000 meanwhile a 1 000 tax deduction lowers your taxable income by that amount so if you fall into the 24 tax bracket a 1 000 deduction would shave 240 off of your tax bill 