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tax breaks: Tax Credit vs. Tax Deduction - What the difference? - 08/09/08 05:42 PM

Kay, 404-298-5500, Georgia Mortgage Consultant

As I explain how the new tax credit provides incentives for Georgia first-time home buyers, I often find myself explaining the differences between a tax credit and a tax deduction.
How is a tax credit different from a tax deduction?
A tax deduction decreases your taxable income, while a tax credit decreases your overall taxes and may lead to you getting money from the IRS.
Here's an example:
Taxable Income: $60,000
Taxes Owed: $1,000

The effects of a $5,000 tax deduction:
Taxable Income: $55,000
Taxes Owed: (computed based on … (0 comments)

tax breaks: New Tax Breaks Affects Short Sales and Single-Parent Students - 12/31/07 11:07 AM
by Kay, Georgia Loan Officer & VA Specialist
Congress recently passed a law offering tax breaks to people: who have had mortgage debt forgiveness (short sales and refinances), are full-time students and single parents, or pay private mortgage insurance (PMI). Congress recently passed HR 3648, Mortgage Forgiveness Debt Relief Act of 2007.
The new law provides the following tax breaks.
Mortgage Debt Forgiveness (such as Short Sales)
In the past, people who have had part of their mortgage debt forgiven usually had to pay some taxes. For example, if a person owes $150,000 on a mortgage, and the … (0 comments)

 

Kay, GA Mortgage Advisor - VA Specialist

Lithonia, GA

More about me…

Kay, GA Mortgage Officer & VA Specialist

Office Phone: (404) 298-5500

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