I'm a Tax Pro. These Tax Breaks Confuse My Clients Every Year

Do tax credits or deductions really save you money on your tax bill or give you a bigger refund? What about tax exemptions and exclusions? It's important to know what's most beneficial to claim on your tax return, but the tax code and jargon don't make that easy. As an IRS-enrolled agent, I'm here to break down what it all means for you this tax season so you can confidently know what really boosts your refund or lowers your tax bill. Here's a breakdown of how these common tax terms work regarding your taxes and how to keep more of your hard-earned money. Read more: Tax Season 2025 Cheat Sheet: Make Filing Your Taxes Simple With This Tool What is the difference between tax credits and deductions? These two tax terms are probably the ones my clients confuse most often. Think of a tax credit as a gift card applied to your tax bill at checkout and a tax deduction as a discount on your taxable income. Both are valuable but credits tend to be far more impactful. Let's look at an exampl ... Read full article.