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Old 10-21-2002, 12:28 PM
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credit vs. deduction

Quote:
Originally posted by organicmommy
Ok I do not think that the new 10K starts til 2003 but I could be wrong. From what I have heard, this is a tax credit, this is taken from your gross earnings prior to figuring out what your taxes to be paid for the year are. Hope this helps.


this is incorrect, I'm afraid. A tax credit is deducted from the total tax owed in a given year, as opposed to a tax deduction (descibed above), which is deducted from gross earnings.
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