Which is better a tax credit or a tax deduction?
I'll answer
Earn 20 gold coins for an accepted answer.20
Earn 20 gold coins for an accepted answer.
40more
40more
Studied at University of California, Irvine (UCI), Lives in Irvine, CA
Tax credits provide a dollar-for dollar reduction of your income tax liability. This means that a $1,000 tax credit saves you $1,000 in taxes. On the other hand, tax deductions lower your taxable income and they are equal to the percentage of your marginal tax bracket.Aug 28, 2013
2023-06-13 09:06:57
评论(499)
Helpful(122)
Helpful
Helpful(2)

Julian Martinez
QuesHub.com delivers expert answers and knowledge to you.
Tax credits provide a dollar-for dollar reduction of your income tax liability. This means that a $1,000 tax credit saves you $1,000 in taxes. On the other hand, tax deductions lower your taxable income and they are equal to the percentage of your marginal tax bracket.Aug 28, 2013