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Tcecarenko [31]
1 year ago
5

Which is more valuable a tax credit or deduction?

Business
1 answer:
Brilliant_brown [7]1 year ago
5 0

A tax credit will reduce your tax bill more than a tax deduction for the same amount, if all other factors are equal.

<h3>Which is more valuable, tax credits or deductions?</h3>

A tax deduction lowers the amount of your taxable income, which is used to compute your tax responsibility, whereas a tax credit lowers your tax liability dollar for dollar. Because they lower your tax burden by one dollar for every dollar of the credit, tax credits are typically more valuable.

<h3>What distinguishes a tax credit from a tax deduction?</h3>

Dollar per dollar, tax credits lower taxable income. Tax credits are typically more beneficial than tax deductions because they directly and dollar-for-dollar lower a taxpayer's gross tax liability.

To know more about tax credit or deduction visit:-

brainly.com/question/28265848

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2 years ago
Ben owns an ice cream shop. Last quarter's income was $9,000; his cost of goods was $575, and his total expenses were $5,000. Wh
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Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $150,000. What is her self-
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