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Know when to claim credits, deductions
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Tax credits and tax deductions are two common ways people lower their income tax bills. Although similar in intention, these two tax-reduction methods have fundamental differences and are not interchangeable.

Knowing the difference can have a big impact on your bottom line.

Basically, tax credits lower your tax amount, dollar for dollar; whereas tax deductions reduce your taxable income. The ultimate value of a deduction depends on your tax bracket: So, if you’re in the 25 percent tax bracket, $1,000 in deductions might lower your tax bill by $250 (25 percent); but a $1,000 credit can lower your tax bill by the full $1,000, no matter what your tax bracket.

There are two basic types of tax credits: refundable and non-refundable.

With refundable tax credits, if you owe less in income tax than your eligible tax credit(s), not only do you pay no tax, you actually get a refund for the difference. So for example, if you owe $750 in income tax but have $1,000 in refundable credits, you will receive a $250 refund.

Common refundable credits include: Earned Income Credit for low-income workers; Additional Child Tax Credit for certain people who get less than the full amount of the regular Child Tax Credit; and a credit for those with more than one employer who had too much Social Security tax withheld.

Most tax credits are non-refundable, which means they can’t reduce taxes owed to less than zero, i.e., they can’t generate a refund when the credit amount is greater than taxes owed.

Common non-refundable credits include those for: standard child credit; child and dependent care; elderly or disabled people; American Opportunity, an enhanced version of Hope Scholarships – up to 40 percent refundable for most people; lifetime learning; adoption; residential energy efficiency; and retirement savings contributions for low-income families.

For many people, it’s more advantageous to take the standard deduction, which is subtracted from gross income to determine taxable income. Others, with large medical, state and local tax, charitable donation and other expenses are better off itemizing deductions.

Common tax deductions include those for: medical and dental expenses exceeding 7.5 percent of adjusted gross income; deductible taxes paid elsewhere (state, local and foreign income tax, property tax, sales tax, etc.); home mortgage points; charitable contributions; casualty and theft losses; and certain education and work-related expenses.

Some miscellaneous deductions, like unreimbursed employee expenses, professional dues, job search expenses and tax preparation fees, must exceed a combined 2 percent of adjusted gross income to be claimed; others, like gambling losses up to the amount of winnings, are not subject to that limit.

You cannot claim a credit and a deduction for the same expense. For example, you may be able to claim work-related tuition as a miscellaneous business expense deduction or as a lifetime learning credit, but not as both.

Eligibility and rules for tax credits and deductions can be extremely complicated and may change from year to year, so refer to the IRS website, www.irs.gov for details. Or, for online links to background information on the credits and deductions mentioned above, read "Tax Credits and Deductions" at Practical Money Skills for Life, Visa Inc’s free personal financial management program at www.practicalmoneyskills.com/deductions.

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Record April boosts Savannah's container trade at port
GardenCityTerminal
The Port of Savannah moved 356,700 20-foot equivalent container units in April, an increase of 7.1 percent. - photo by Provided

The Georgia Ports Authority's busiest April ever pushed its fiscal year-to-date totals to more than 3.4 million 20-foot equivalent container units (TEUs), an increase of 8.8 percent, or 280,000 TEUs, compared to the first 10 months of fiscal 2017.

"We're on track to move more than 300,000 TEUs in every month of the fiscal year, which will be a first for the authority," said GPA Executive Director Griff Lynch. "We're also anticipating this to be the first fiscal year for the Port of Savannah to handle more than 4 million TEUs."

April volumes reached 356,700 20-foot equivalent container units, up 7.1 percent or 23,700 units. As the fastest growing containerport in the nation, the Port of Savannah has achieved a compound annual growth rate of more than 5 percent a year over the past decade.

"As reported in the recent economic impact study by UGA's Terry College of Business, trade through Georgia's deepwater ports translates into jobs, higher incomes and greater productivity," said GPA Board Chairman Jimmy Allgood. "In every region of Georgia, employers rely on the ports of Savannah and Brunswick to help them become more competitive on the global stage."

To strengthen the Port of Savannah's ability to support the state's future economic growth, the GPA Board approved $66 million in terminal upgrades, including $24 million for the purchase of 10 additional rubber-tired gantry cranes.  

"The authority is committed to building additional capacity ahead of demand to ensure the Port of Savannah remains a trusted link in the supply chain serving Georgia and the Southeast," Lynch said.

The crane purchase will bring the fleet at Garden City Terminal to 156 RTGs. The new cranes will support three new container rows, which the board approved in March. The additional container rows will increase annual capacity at the Port of Savannah by 150,000 TEUs.

The RTGs will work over stacks that are five containers high and six deep, with a truck lane running alongside the stacks. Capable of running on electricity, the cranes will have a lift capacity of 50 metric tons.

The cranes will arrive in two batches of five in the first and second quarters of calendar year 2019.

 Also at Monday's meeting, the GPA Board elected its officers, with Jimmy Allgood as chairman, Will McKnight taking the position of vice chairman and Joel Wooten elected as the next secretary/treasurer.

For more information, visit gaports.com, or contact GPA Senior Director of Corporate Communications Robert Morris at (912) 964-3855 or rmorris@gaports.com.

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