What Is a Tax Credit?

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Subtract tax credits from the amount of tax you owe. There are two types of tax credits:

• A nonrefundable tax credit means you get a refund only up to the amount you owe.

• A refundable tax credit means you get a refund, even if it's more than what you owe.

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What Is a Tax Deduction?

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Subtract tax deductions from your income before you figure the amount of tax you owe.

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Credits for Individuals

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Family and Dependent Credits

• Earned Income Tax Credit

• Child and Dependent Care Credit

• Adoption Credit

• Child Tax Credit and Credit for Other Dependents

• Credit for the Elderly or Disabled

Income and Savings Credits

• Earned Income Tax Credit

• Saver's Credit

• Foreign Tax Credit

• Excess Social Security and RRTA Tax Withheld

• Credit for Tax on Undistributed Capital Gain

• Nonrefundable Credit for Prior Year Minimum Tax

Homeowner Credits

• Residential Energy Efficient Property Credit

• Low-Income Housing Credit (for Owners)

• Frequently Asked Questions on Capital Gains, Losses, and Sale of Home

Health Care Credits

• Premium Tax Credit (Affordable Care Act)

• Health Coverage Tax Credit

Education Credits

• American Opportunity Credit and Lifetime Learning Credit

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Deductions for Individuals

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Work Related Deductions

• Home Office

• Business Entertainment Expenses

• Employee Business Expenses

Itemized Deductions

• Deductible Taxes

• State and Local Tax Deduction Limit

• Property Tax

• Real Estate Tax

• Sales Tax

• Charitable Contributions

• Gambling Loss

• Miscellaneous Expenses

• Interest Expense

• Home Mortgage Interest

• Moving Expenses

Education Deductions

• Student Loan Interest

• Work-Related Educational Expenses

• Teacher Educational Expenses

Health Care Deductions

• Medical and Dental Expenses

• Health Savings Account (HSA)

Investment Related Deductions

• Sale of Home

• Individual Retirement Arrangements (IRAs)

• Capital Losses

• Bad Debt

• Opportunity Zones

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Source of Information: IRS.gov