Yes you pay less tax up to a yearly cap. The yearly cap for 2025 and 2026 is 1100 dollars. So if I was in the Union listed in the image here and had to pay 700 dollars then I would list it on my tax form and pay 700 dollars less on my taxes that year.
I think it’s word choice that caused confusion here. In the US at least, “deduction” means you don’t have to pay taxes on it, not that you get back the full amount that you paid. What you’re talking about would be called a tax credit.
Yes you pay less tax up to a yearly cap. The yearly cap for 2025 and 2026 is 1100 dollars. So if I was in the Union listed in the image here and had to pay 700 dollars then I would list it on my tax form and pay 700 dollars less on my taxes that year.
I think it’s word choice that caused confusion here. In the US at least, “deduction” means you don’t have to pay taxes on it, not that you get back the full amount that you paid. What you’re talking about would be called a tax credit.
I didn’t know that. That feels like something this administration will cancel on a random Thursday…