Question
Why is a tax credit more valuable than a taxdeduction? Choose the correct answer below. A. Since a tax credit gets subtracted from aperson's taxbill,
Why is a tax credit more valuable than a taxdeduction? Choose the correct answer below.
A.
Since a tax credit gets subtracted from aperson's taxbill, it reduces their bill by that amount ofmoney, where a tax deduction gets subtracted from their taxableincome, so their bill is only reduced by a fraction of that amount.So, a tax credit saves them money.
B.
Since a tax credit gets added to aperson's taxbill, it increases their bill by that amount ofmoney, where a tax deduction gets added to their taxableincome, so their bill is only increased by a fraction of that amount.So, a tax credit saves them money.
C.
Since a tax deduction gets added to aperson's taxbill, it increases their bill by that amount ofmoney, where a tax credit gets added to their taxableincome, so their bill is only increased by a fraction of that amount.So, a tax deduction saves them money.
D.
Since a tax deduction gets subtracted from aperson's taxbill, it reduces their bill by that amount ofmoney, where a tax credit gets added to their taxableincome, so their bill is only reduced by a fraction of that amount.So, a tax deduction saves them money.
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