Tax Credit 2022
Log in
TAXES
TAX DEDUCTIONS GUIDE: 20 POPULAR BREAKS IN 2022
Advertiser disclosure
Tax Deductions Guide: 20 Popular Breaks in 2022
A deduction cuts the income you're taxed on, which can mean a lower bill. A credit cuts your tax bill directly.
Written by Tina Orem
Reviewed by Lei Han 
Mar 2, 2022
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Tax deductions and tax credits can be huge money-savers — if you know what they are, how they work and how to pursue them. Here's a cheat sheet.
What is a tax deduction?
A tax deduction lowers your taxable income and thus reduces your tax liability. You subtract the amount of the tax deduction from your income, making your taxable income lower. The lower your taxable income, the lower your tax bill.
What is a tax credit?
A tax credit is a dollar-for-dollar reduction in your actual tax bill. A few credits are refundable, which means if you owe $250 in taxes but qualify for a $1,000 credit, you’ll get a check for the difference of $750. (Most tax credits, however, aren’t refundable.)
As the simplified example in the table shows, a tax credit can make a much bigger dent in your tax bill than a tax deduction.
-
0/2000
-
1:08:09
Donald Trump Jr.
6 hours agoFBI Dream Team, Plus Taking Your Questions Live! | Triggered Ep.219
115K163 -
LIVE
Akademiks
5 hours agoDrake and PartyNextDoor '$$$4U' Album Sells 250K first week. BIG AK IS BACK.
2,986 watching -
3:12:08
MyronGainesX
4 hours ago $21.39 earnedDan Bongino Named As Deputy Director Of FBI And CPAC Recap
53K15 -
DVR
vivafrei
4 hours agoBarnes Live from Seattle - Defending Benshoof in a Case that is CRAY CRAY!
66.9K22 -
2:12:12
Robert Gouveia
4 hours agoLiberals EXPLODE over Elon's Email; Lawsuits FLY; Sanctions?? Congrats Dan!
40.7K10 -
1:33:36
Redacted News
5 hours agoBREAKING! PUTIN LAUNCHES MASSIVE OFFENSIVE IN UKRAINE AS EUROPEAN LEADERS PUSH FOR MORE WAR
109K200 -
44:39
Kimberly Guilfoyle
5 hours agoBetter Days Ahead for the FBI, Live with Asm Bill Essayli & John Koufos | Ep.199
58.9K24 -
1:40:29
In The Litter Box w/ Jewels & Catturd
1 day agoWhat Did You Do Last Week? | In the Litter Box w/ Jewels & Catturd – Ep. 748 – 2/24/2025
112K34 -
23:34
Stephen Gardner
5 hours ago🔥CNN PANICS over $5000 DOGE Dividend | Trump Orders bigger Audits
67.6K119 -
1:53:54
The White House
7 hours agoPresident Trump Holds a Press Conference with President Emmanuel Macron of France
81.9K81
0 Comments