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A tax credit is a great benefit because it reduces dollar for dollar the amount of tax
that you owe at the end of the day. Some of the more common tax credits that are out there
might be for a child tax credit or tax credits for depending care expenses or higher education
expenses that you may occur. So let me give you an example, let's say I calculated out
my taxes and I owe $20,000 in taxes this year, but I was eligible for a thousand dollar child
tax credit for one of my children, instead of owing $20,000 in taxes I now owe $19,000
in taxes, and that's tremendous. Again credits are dollar for dollar per deduction in the
amount of taxes you owe. So taking advantage of that credit just put an extra $1000 in
my pocket. So what I would ask everybody watching this to do, is really make sure, go through
your tax returns, go through all the available credits and make sure your taking credits
for everything you're entitled to. Because a lot of people are missing out on credits
they were eligible for and it ends up costing them quite a bit of money that they could
have had, and it's all legal. Taking credits is part of the IRS guidelines in reducing
taxes for certain individuals depending on your situation. So review your taxes and make
sure you're taking all your credits that you're eligible for.