Federal taxation accounting

6. T F The tax savings that tax deductions provide can be measured based upon the taxpayers' tax rate or tax bracket applied to the deduction while a tax credit provides a full dollar for dollar savings from the amount of tax the taxpayer owes. 7. The following are all possible tax credits that if eligible a taxpayer can take except for: A. Child Tax Credit. B. Child and Dependent Care Credit. C. The BMCC/CUNY Lifetime Tuition Tax Credit. Tax Credit for the Elderly or the Disabled. 8. The Alternative Minimum Tax (AMT): A. Only applies to those taxpayers with incomes over $2,500,000. B. Will apply if the amount of the calculated tax is greater than the regular income tax C. Only applies to those self-employed individuals who report their business income on tax form Schedule C. D. Neither choices A, B or C are correct. 9. The Earned Income Credit: A. Is a non-refundable tax credit. B. Is a refundable tax credit. C. Is only for employers that hire new employees to cut the nation's unemployment rate. D. Choices "A" and "C" are both correct. 10. Estimated tax payments: A Are for those taxpayers that cannot accurately compute their taxable income B. When required and failed to have been paid may subject the taxpayer to an underpayment penalty unless a safe harbor provision applies. C. Are totally unnecessary. D. Neither choices A. B or C are correct