There is no significant difference between a federal tax credit and a federal tax deduction.

Name: There is no significant difference between a federal tax credit and a federal tax deduction.
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A federal tax credit directly reduces the amount of taxes owed, while a federal tax deduction reduces the amount of taxable income, resulting in a lower tax bill. In other words, a tax credit is a dollar-for-dollar reduction in taxes owed, whereas a tax deduction reduces the taxpayer's taxable income.

There Is No Significant Difference Between a Federal Tax Credit