For clarity, using existing tax terms, you're describing a deduction.
Tax deductions reduce your taxable income. Tax credits reduce the amount of tax owed.
For clarity, using existing tax terms, you're describing a deduction.
Tax deductions reduce your taxable income.
Tax credits reduce the amount of tax owed.
Yes, but if you have no income, you would get all taxes paid back.
I understand that it’s an income credit, but it has the effect of “if you have no income to start with, you get no money back.”
Yes, but if you have no income, you would get all taxes paid back.
I understand that it’s an income credit, but it has the effect of “if you have no income to start with, you get no money back.”
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