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Tax Credit Consulting: Tax Credits Peoria AZ

Most people try to avoid tax subjects as much as possible. Tax credits are something you should love because they save you a ton. How does a tax credit work? Get the answer from the following.

Mr. Jeffrey D. Carter (RFC®), CSA, LUTCF
(623) 933-9500
10451 W. Palmeras Drive
Sun City, AZ
Company
Smart Financial Strategies, Inc.
Qualifications
Years of Experience: 22
Membership
IARFC, SCSA, NAIFA
Services
Invoice, Estate Planning, Trustee Service, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Charitable Planning, Charitable Foundations, Asset Protection, Compensation Plans

Data Provided by:
Liberty Tax Service
(623) 792-1140
8940 W. Bell Rd. Ste B102
Peoria, AZ
 
Liberty Tax Service
(866) 871-1040
8940 W Bell Rd # 102
Peoria, AZ

Data Provided by:
Beck Tax Works
(623) 566-2213
8247 W. Cielo Grande Ave
Peoria, AZ
 
Accurate-Leigh-Done
(623) 561-6172
10327 W. Coggins Dr. #2
Sun City, AZ
 
H&R Block
(623) 334-9866
7549 W CACTUS rd STE 110
PEORIA, AZ

Data Provided by:
H&R Block
(623) 825-2871
20255 N LAKE PLEASANT hwy
PEORIA, AZ

Data Provided by:
Liberty Tax Service
(866) 871-1040
8411 W Thunderbird Rd
Peoria, AZ

Data Provided by:
Sun City Home Tax Svc
(623) 974-6036
14656 N Del Webb Blvd
Sun City, AZ

Data Provided by:
H&R Block
(623) 451-0671
28455 N VISTANCIA BLVD
PEORIA, AZ

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Tax Credit Consulting: Tax Credits

How Does A Tax Credit Work?

Most people try to avoid tax subjects as much as possible. Tax credits are something you should love because they save you a ton. Okay, so how does a tax credit work?

The world is full of government conspiracy theories. Who caused 9/11? Who killed President Kennedy? The general idea is there is a hidden power running everything like a puppeteer. Whatever your view on these theories, most government efforts to change our conduct are very open. The efforts often take the form of financial incentives and tax credits are one of the biggest.

People talk about tax deductions all of the time. Please. Tax deductions pale in comparison to the mighty tax credit. Why is this? Well, consider what each does. A tax deduction reduces the amount of income you will claim when figuring out the tax you will owe. Let's say you made $50,000 last year. Now let's say you have a single tax deduction of $500. This lowers your adjusted gross income to $49,500. You would then go to the tax tables and figure out that you owe $12,500. The $500 tax deduction saved you a minimalistic $50 or so on the final amount you had to pay. These numbers are inaccurate, but used to show you how things work.

A tax credit is not deducted from your income before figuring out how much tax you owe. Instead, it is deducted dollar for dollar from the tax you owe. Now, take the same example but change the deduction to a $500 tax credit. Instead of subtracting the $500 figure from the $50,000 you earned during the year, you would direct it from the $12,500 you had to pay Uncle Sam. Instead of the $50 saving the tax deduction gave you, you would get the full $500. Again, this is just for example purposes.

People search high and low for tax deductions when they should really be looking for tax credits. Consider the case of hybrid cars. The federal government wants us to break our oil addition. To get us to embrace hybrid cars, it issued a large tax deduction of $3,000 for anyone that...

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