Chapter 3 Financial Planning Exercise 4 Effect of tax credit versus tax exemption Explain and calculate the differences resulting from a $1,500 tax credit versus a $1,500 tax deduction for a single taxpayer with $54,000 of pre-tax income. The standard deduction in 2018 was $12,000 for single. Note that personal exemptions were suspended for 2018. Use Exhibit 3.3 to determine the corresponding tax rate. Round the answers to the nearest cent. After-tax Income (Tax Deduction) After-tax Income (Tax Credit) $ $