Most of us are confused about these two terms.  I was…..Here is a link to visual illustration to explain the differences.

Tax deduction vs tax credit

• In the above example, I calculated tax based on “Married filing jointly status”

     Most common tax credits

• Earned Income Tax Credit

• American Opportunity Tax Credit

• Child and Dependent Care Credit

• Savers Tax Credit

  Most common tax deductions

• Retirement Contributions

• Charitable Donations

• Mortgage Interest Deduction

• Interest in College Education Costs

• Self-Employment Expenses