How Credits and Deductions Work Whether you are an individual taxpayer or you represent a business, tax credits, deductions and certain investments can change how much tax you owe. Tax credits are subtracted from the tax you owe. Tax deductions and investment losses are subtracted from your income before you calculate your tax. Claim Federal Tax Credits, Deductions and Investment Benefits Individuals Standard Deduction Earned Income Tax Credit – EITC Child Tax Credit and Credit for Other Dependents Child and Dependent Care Credit Individual Retirement Arrangements (IRAs) Education Credits and Deductions More for Individuals Businesses and Self-Employed Opportunity Zones Deductible Business Expenses Standard Mileage Rate Research Credit Tax Information for Retirement Plans More for Businesses
