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Tax credits and deductions for individualsnnTax credits and deductions change the amount of a person’s tax bill or refund. People should understand which credits and deductions they can claim and the records they need to show their eligibility.nTax credits:nnA tax credit reduces the income tax bill dollar-for-dollar that a taxpayer owes based on their tax return. nnSome tax credits, such as the Earned Income Tax Credit, are refundable. If a person’s tax bill is less than the amount of a refundable credit, they can get the difference back in their refund.nTo claim a tax credit, people should:nn• Keep records to show their eligibility for the tax credits they claim.n• Check now to see if they qualify to claim any credits next year on their tax return.nDeductions:nnDeductions can reduce the amount of a taxpayer's income before they calculate the tax they owe.nnMost people take the standard deduction. The standard deduction changes each year for inflation. The amount of the standard deduction depends on a taxpayer's filing status, age and whether they're blind and whether the taxpayer is claimed as a dependent by someone else. nnSome people must itemize their deductions, and some people may choose to do so because it reduces their taxable income more than the standard deduction. Generally, if a taxpayer's itemized deductions are larger than their standard deduction, it makes sense for them to itemize.