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You are in the 15% marginal tax bracket. You have the option of deducting $2,000 as an adjustment to income on the front page of
You are in the 15% marginal tax bracket. You have the option of deducting $2,000 as an adjustment to income on the front page of Form 1040, or you can take a $500 tax credit on the back page. Which option will reduce your taxes by the largest amount?
A. Deduct the $2,000 as an adjustment to income | |
B. Take the $500 tax credit |
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