Tax credit vs tax deduction: a credit cuts your tax bill dollar for dollar, while a deduction is only worth your tax rate.
David Wiener walks through the math. $20,000 of deductions at a 24% rate saves $4,800. That's why a $20,000 credit is worth about four times a $20,000 deduction to most business owners.
From The Tax Strategy Playbook.
Full episode: https://taxstrategyplaybook.com
No-cost analysis through CSSI: https://calendly.com/david-wiener/cs or 770-224-8504, option two
This is educational content, not tax advice for your situation. Talk to your tax professional.