The most common tax return that individuals will file is Form 1040. This tax form is broken into several sections. In considering tax and credits, filers often have both credits and deductions, and both have different implications for reducing taxable income. Discuss the differences between standard and itemized deductions and individual tax credits. How do deductions and credits reduce taxable income? When considering itemized deductions and tax credits list some of the most common along with the limitations that may apply.