Tax Deduction or Tax Credit: Which Is Better?
Have you caught your breath yet since filing your taxes? Well, it’s now time to start planning your taxes for next year! As you create a tax “game plan,” having two ways to deduct your tax bill can be very confusing. Let’s walk through it. We promise it’s a lot simpler than it sounds. TAX DEDUCTION — GETTING A LOWER TAXABLE INCOME Let’s say you’re a small-business owner. Sometimes, you might accidentally or intentionally pay off business expenses on your own dime. Luckily, the IRS doesn’t want to punish small-business owners for this. They consider many business expenses as tax deductible. So, when you file a tax deduction, it lowers your taxable income and thus reduces your tax liability. The lower your taxable income, the lower your tax bill. TAX CREDIT — GETTING A TAX BILL ‘GIFT CARD’ Your taxable income can go up or down throughout the year, depending on what you make and types of expenses. However, once calculated at the end of the year, your tax bill is often a fixed number. That’s when tax credits come in handy. A tax credit is a dollar-for-dollar reduction in your actual tax bill. In fact, a few credits are refundable: If you owe $300 in taxes, but qualify for a refundable $1,000 tax credit, you’d get
a check for the difference of $700. Because this credit applies directly to your bill, it can often take a bigger bite out of your tax bill than a tax deduction. It’s worth mentioning that, in most cases, tax credits aren’t refundable. However, unlike gift cards, their value doesn’t last into the following year. If you owe $300 in taxes, and have a nonrefundable $1,000 tax credit, you’ll owe zero dollars without getting a check for the difference. In 2021, you may know the government provided pandemic- inspired tax credits for Americans with dependents. However, many credits exist, and some, like savers’ credits, might surprise you. If you’re married and filing jointly, and have a combined income between $43,001–$66,000, you’ll receive a tax credit of 10% of your 401(k) or Roth IRA contributions. A single filer with a $19,750 income or less qualifies for a credit of 50% of retirement contributions. Check out lists online of available federal tax credits for 2022, and make sure to research carefully how they work. If you want a better tax strategy for your next tax bill, this is a great way to start.
It’s All at the State Farmers Market APPLES TO ORANGES
But the Market is not just humble produce stands. It boasts a wholesale terminal for grocers and restaurants, plus a Truckers Building where shoppers can drive through for cases of produce at rock bottom prices. Local plants and flowers are usually available in the Farmers Building, and that’s before even touching on the Market Shoppes building. The Market Shoppes are located in a 15,600-square-foot building that is climate controlled and filled with vendors of all types. Yes, there’s more fresh produce, but you can also find local meat, cheese, wine, baked goods, and crafts. Specialty shops sell items like lotion, soap, candy, fish, and picture frames. You’ll find snacks like kettle corn and shaved ice. If you want something a little more substantial, there are three restaurants on site.
Finish your day by checking out Market Imports, a 2-acre home and garden supplier. (Note: They are closed on Mondays and Tuesdays.) You’ll find fountains, furniture, pottery, lawn ornaments, and indoor accessories. Whether you’re looking for a vintage cabinet or a new outdoor firepit, they’re sure to have it here. We’re fortunate enough to have one of the best farmers markets in the country right here in our backyard, so don’t let it go to waste! If it has been a while since your last trip, now is the perfect time to see what you’ve been missing and support our local growers and business owners. Whatever you’re missing for your Fourth of July celebration, you’ll find it at the State Farmers Market.
Summer boasts some of the best produce. So, it’s no surprise that July marks National Watermelon, Corn, and Blueberry months. No backyard barbecue is complete without at least one of these treats! And you can find all of them and much more at the State Farmers Market in Raleigh. The State Farmers Market opened in 1955 when local agricultural producers realized they’d all benefit from having a central location to sell their produce. It started as a 17-acre site but later moved to its current 75-acre location. Due to its size and popularity, the State Farmers Market is open year-round and every day of the week, so there’s never a bad time to stock up on fruits and vegetables.
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