To Your Credit
While some of the best credits and deductions required taxpayers to take action before Dec. 31, there are others that can be used right up to the filing deadline, which has been extended to July 15 this year, due to the COVID-19 crisis. (The contribution deadlines for certain savings plans have also been extended.) Whenever possible, though, seek out credits rather than deductions: Each dollar in tax credits is one less dollar in taxes paid, while deductions that reduce taxable income offsets taxes by only 10 to 39.6 cents for every dollar deducted, depending on the tax bracket. With help from Melinda Kibler, a certified financial planner and enrolled agent with Palisades Hudson Financial Group in Fort Lauderdale, Florida, we found a host of 2019 deductions and credits to choose from.