Frequently Asked Questions Tax Services

Customer Question #1 What Is a Tax Credit?

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Subtract tax credits from the amount of tax you owe. There are two types of tax credits:

  • A nonrefundable tax credit means you get a refund only up to the amount you owe.
  • A refundable tax credit means you get a refund, even if it's more than what you owe.

Customer Question #2 What Is a Tax Deduction?

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 Subtract tax deductions from your income before you figure the amount of tax you owe. 

Customer Question #3 Required Minimum Distributions (RMDs)

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Your required minimum distribution is the minimum amount you must withdraw from your account each year.

  • You can withdraw more than the minimum required amount.
  • Your withdrawals will be included in your taxable income except for any part that was taxed before (your basis) or that can be received tax-free (such as qualified distributions from designated Roth accounts).