just search the irs website for publications.
a 'deduction', like business expenses, contributions, medical, home interest, etc. is deducted from your income, then the tax rate is applied to that remaining income.
a 'credit' is applied against what you owe in taxes, after all income and deductions and taxes are figured. some credits will only reduce your taxes to 0, but not give a refund beyond that. Some will take your taxes into negative and give a refund.
'refund' is not the irs check in april, but actually refunding your tax liability.
Quiz: how much tax did you pay last year?
3/4 people will say I didn't pay any, I got a refund.
Duh........adding up al lthe state, fed, fica, sales taxes, vehicle taxes, phone taxes, you paid 20,000 or more, you just paid extra and got a 'refund' of your excess back.
why so complicated?
every persons tax break is another persons definition of 'loophole'.
congress is made up of lawyers. What do lawyers do...... is there a correlation there?
spacemule for congress......
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