15 Tax Credits and Deductions That Could Save You Thousands
As the deadline to file 2016 tax returns approaches, some taxpayers may be scrambling to find last-minute deductions or credits. It may be too late in some cases -- many of the "tricks" that reduce taxes must be executed before Dec. 31 -- but some tax-savings tips still work. Remember that tax credits are much more valuable than deductions, because each dollar in credit equates to one less dollar in taxes paid. Deductions reduce taxable income, so each dollar in deductions likely offsets taxes by 10 to 39.6 cents, depending on the tax bracket.