It is easy to lump deductions, credits, and exemptions into the same basket of tax-saving mechanisms, but they are distinctly different. One new major difference is that the Tax Cuts and Jobs Act of 2017 (TCJA) has done away with personal exemptions for the tax years 2018-2025, so you won't be able to use exemptions for a while. Here are the simplified differences:
Let's look at the three categories in more detail:
Failing to pay your taxes or a penalty you owe could negatively impact your credit score. You can check your credit score and read your credit report for free within minutes by joining MoneyTips.
Originally Posted at: https://www.moneytips.com/exemptions-deductions-and-credits
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