A tax credit is a dollar for dollar reduction in your tax?

a) true

b) false

Question

Business

Karla Johnson

13 January, 11:56

A tax credit is a dollar for dollar reduction in your tax?

a) true

b) false

+2

Answers (1)

Know the Answer?

Felicity Garrison · Answer 1

Tax credits directly reduce the amount of tax you owe, giving you a dollar-for-dollar reduction of your tax liability. A tax credit valued at $1,000, for instance, lowers your tax bill by the corresponding $1,000. Tax deductions, on the other hand, reduce how much of your income is subject to taxes.

A tax credit is a dollar for dollar reduction in your tax?a) trueb) false

A tax credit is a dollar for dollar reduction in your tax?

a) true

b) false