question archive Which of the following statements regarding tax credits is true? Group of answer choices a) They are deductions from adjusted gross income (AGI) based on the number of persons supported by the taxpayer’s income
Which of the following statements regarding tax credits is true? Group of answer choices a) They are deductions from adjusted gross income (AGI) based on the number of persons supported by the taxpayer’s income
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Which of the following statements regarding tax credits is true? Group of answer choices
a) They are deductions from adjusted gross income (AGI) based on the number of persons supported by the taxpayer’s income.
b) They are deductions from a taxpayer’s tax liability that directly reduce his or her taxes due.
c) They represent the income remaining after subtracting all allowable adjustments to (gross) income.
d) They are personal expenditures that can be deducted from adjusted gross income (AGI) when determining taxable income.
e) They are deductions that depend on the taxpayer’s filing status, age, and vision and that can be claimed by a taxpayer whose total itemized deductions are small.
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The answer is
They are deductions from a taxpayer’s tax liability that directly reduce his or her taxes due.
Tax credit is the sum of money which a taxpayer deduct directly from the tax liability.it is different from the tax deduction.the main benefit of a tax credit is it play as an advantage of deduction of tax due not just the amount of taxable income.other options are not related to the tax credit those are related to the Tax deductions and Adjusted gross income
