What is the Difference Between Tax Credit an Tax Deduction ?

In this video Rob offers an in-depth guide on understanding tax credits and deductions, focusing primarily on personal tax returns. Rob clarifies the distinction between these two financial benefits, emphasizing the superior value of tax credits over deductions in reducing tax liability. Using a 2023 tax return example of a married couple with two children, the video illustrates various income sources such as wages, interest, dividends, and capital gains, and explains the implications of taxable income. It delves into itemized deductions, including state taxes, real estate taxes, mortgage interest, and charitable donations, comparing them with the standard deduction to demonstrate how deductions can lower taxable income.
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🟦 About my channel:
Rob CPA channel was created with a mission to provide viewers with accurate content so they can be proactive in their tax planning strategies and build financial wealth. The video topics I selected reflect real-world issues that I’ve seen our clients experience relating to their personal tax returns, retirement plans, and accounting.
The channel allows me to share my passion for taxes, personal finance, and accounting. I create content I wish schools and entrepreneurship programs/accelerators would teach their students and companies. I take complex topics and simplify them for the viewers as well as show examples.
I will be covering the following topics:
- Personal & business tax planning tips;
- Personal finance;
- Accounting;
- Investing;
- Entrepreneurship
New videos are released every week, so be certain to SUBSCRIBE! : shorturl.at/fL014
#taxcredits #taxcredit #taxdeductions

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