TAX HOMEWORK HELP

1. What is more valuable to a taxpayer, a $100 tax credit or a $100 tax deduction? Why?

2. What are some of the considerations that Congress takes into account in determining whether to give taxpayers a credit or a deduction to motivate taxpayers to make certain expenditures?

3. If a taxpayer has both refundable credits and non-refundable credits, what order would the taxpayer want to use them? Give an example to show why your answer is correct.