The Financial Adjustment (Ep 1_What is a Tax Credit?)

Añadido: 2026-05-16

[00:00:00]What's a tax credit? I mean, I hear about tax incentives, I hear tax laws, everything these days is taxes, taxes, taxes. What's a tax credit? A great question. A tax credit essentially is a dollar-for-dollar offset against a company's tax liability, which will in turn improve their cash flow. Most people are familiar with a deduction, not a deduction, big distinction there.

[00:00:23]The tax deduction is what I take off of where I adjust my adjustable gross income so I can pay less in taxes.

[00:00:30]Correct.

[00:00:31]>> Whereas this tax credit, if I owe $50,000 in taxes, but then you find me a tax credit of 20,000, now I just lowered my taxes from 50 to $30,000.

[00:00:43]That's correct.