Which of the following is more valuable for the tax payer?

Kiddie tax credit.

$1,000 tax deduction.

A tax credit and a tax deduction are the same values.

$1,000 tax credit.

What is the difference between realized and recognized income?

Realized income is taxable in a future tax period, and recognized income is taxable in the current tax period.

Realized and recognized income are the same thing; one is just an accounting term and the other is a tax term.

Realized income is when it is reported on the tax return, and recognized income is when an asset is converted into another asset for a gain.

Realized income occurs when money is earned, and recognized income is when realized income is taxed.