what is the difference between a tax credit and a tax deduction 
a tax credit lowers the amount of tax you owe on a dollar by dollar basis for example a 1 000 tax credit means that you owe 1 000 less in taxes by contrast a tax deduction lowers your taxable income if your taxable income drops by 1 000 and you re in the 24 tax bracket you d save 240 in taxes 