Tax Credits:
A tax credit is recognition, by the IRS, of partial payment made towards taxes due. Tax credits are generally more valuable than tax deductions or allowances of the same magnitude because they reduce taxes directly. A deduction or allowance reduces taxable income therefore the reduction in tax is only a fraction (the marginal tax rate) of the deduction.
Corporate taxpayers, as well as individuals, may lower their federal tax bill by purchasing Federally Mandated Tax Credits. Additionally, since the credits are pre-funded, they can be transferred, gifted, or inherited.
Disclaimer – Securities offered through Emerson Equity LLC
Member FINRA and SIPC.
CLK Investment Advisors is independent of Emerson Equity LLC
This is not a solicitation to sell or an offer to buy securities. Securities are sold only in states where Emerson Equity is registered or otherwise exempt from registration. All investment involves risk. Speak with your tax professional regarding your current tax situation and proposed investments prior to investing. Past performance is not indicative of future results.
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