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Form it 602 Claim for EZ Capital Tax Credit Tax Year 2022-2024

2022-2024 Form

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in this video I'm going to explain the difference between a tax deduction and a tax credit so conceptually tax deductions are going to reduce taxable income and credits are going to reduce the actual tax dollars that are due that are owed to the government right so that might seem like a very subtle difference or it might be a little too abstract for you so let's just jump into an example and it'll make it a little bit easier for you to understand so let's say in our example that you have taxable income for a year of $14,000 all right and your tax rate there's just 10 percent right we're not going to get into progressive tax rates here it's make it simple and so we just say well how much taxes do how much is owed by you to the government well we just take the 14,000 and multiply it by 10% and that gives us $1400 tax do now I want to introduce a $500 deduction right so let's just put here let's say that you have a $500 deduction and let's see how that changes things okay so $500 deducti

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