While tax credits and deductions can reduce your tax liability and potentially increase your refund, understanding their differences is crucial for optimizing your tax filings and ensuring you don’t leave money on the table. An experienced accountant can explain these strategies and advise you on ways to maximize them.
A tax credit is an amount you can subtract directly from the taxes you owe to the government. It is a benefit that reduces your tax bill on a dollar-for-dollar basis. For instance, if you owe $1,000 in federal taxes and are eligible for a $300 tax credit, your net liability reduces to $700. Examples of tax credits include the Earned Income Tax Credit, Child Tax Credit and American Opportunity Tax Credit.
A tax deduction reduces the amount of your income that is subject to tax, thereby decreasing your overall tax liability based on your tax bracket.
Work With Arizona’s Best Tax Accountants
An expert accountant can advise you on the best ways to get the full amount of money you are eligible for under IRS regulations.
Understanding the difference between tax credits and deductions is fundamental to effective tax planning and saving money. Hiring an accountant can be invaluable in keeping your financial records in impeccable order and ensuring you take full advantage of the tax benefits available to you.
Clear View Business Solutions specializes in providing expert tax advice tailored to your unique financial situation. Contact us today to comply with tax laws and efficiently maximize your next tax return.
At Clear View Business Solutions, we know you want your business to prosper without having to worry about whether you are paying more in taxes than you should or whether your business is set up correctly. The problem is it's hard to find a trusted advisor who can translate financial jargon to layman's terms and who can actually help you plan for better results.
We believe it doesn't have to be this way! No business owner should settle for working with a CPA firm that falls short of understanding what you want to achieve and how to help you get there.
Northwest Location:
7530 N. La Cholla Blvd., Tucson, AZ 85741
Central Location:
2929 N Campbell Avenue, Tucson, AZ 85719
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At Clear View Business Solutions, we know you want your business to prosper without having to worry about whether you are paying more in taxes than you should or whether your business is set up correctly. The problem is it's hard to find a trusted advisor who can translate financial jargon to layman's terms and who can actually help you plan for better results.
We believe it doesn't have to be this way! No business owner should settle for working with a CPA firm that falls short of understanding what you want to achieve and how to help you get there. With over 20 years of experience serving hundreds of business owners like you, our team of experts combines financial expertise and proactive communication with our drive to help each client achieve results and have fun along the way.
Here's how we do it:
Discover: We start with a consultation to understand your specific goals, what's holding you back, and what success looks like for you.
Strategize & Optimize: Together, we design a customized strategy that empowers you to progress toward your goals, and we optimize our communication as partners.
Thrive: You enjoy a clear view of your business and your financial prosperity.
Schedule a consultation today, and take the first step toward being able to focus on your core business again without wondering if your numbers are right- or what they mean to your business.
In the meantime, download, "The Business Owner's Essential Guide to Tax Deductions" and make sure you aren't leaving money on the table.
