Deductions reduce taxes but credits reduce income. True of False?

Group of answer choices

True

False

Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $30,000 for the 2021 calendar tax year. Karen is covered by a pension through her employer.

What is the maximum amount that Karen may deduct for contributions to her IRA for 2021?

Here is an example of how your answer should look: $13,690