What’s better, a deduction or a tax credit?
The true impact of the Republican tax proposal on the middle class can’t really be measured just yet. We do know it would create a new “family credit” and expand the child tax credit used by working families. On the other hand, the personal exemption taxpayers can now claim for themselves and each of their family members would disappear. And families would no longer be able to deduct what they’ve paid in state and local taxes from their federal taxable income. So when it comes to credits versus deductions, which one matters more for a typical household?
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