It has come to my attention lately that most taxpayers don’t really understand the difference between a tax credit and a tax deduction. That’s perfectly okay; it’s confusing…and boring. I mean, not to me. But I think taxes are fun, so I’m clearly insane.
But you need to learn this because IT MATTERS. There are some politicians out there, including President Trump, who want to sell you on the merits of various deductions or credits. But a lot of the time, you’re secretly being screwed with your pants on!
Don’t get screwed with your pants on. Learn the difference. And then be the person who makes an educated choice at the polls, and shows off at dinner parties.
To help with this teaching moment, and because this is such a boring topic (I guess), I’m going to bring in the furriest little tax professor ever, my good friend, Tax Squirrel and his little squirrel friends.