what is the difference between tax credits and tax deductions 
tax credits reduce the tax you owe while tax deductions lower your taxable income while both save you money credits are more valuable because they reduce your tax bill 9 a 1 000 tax credit reduces your tax bill by 1 000 conversely a 1 000 tax deduction lowers your taxable income if you re in the 22 tax bracket a 1 000 deduction saves 220 on your tax bill 