7. Explain the differences between a tax credit and a tax deduction. Which is better? List...

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Answer 1

Answer #1

Tax credit and tax deductions are completely different

Tax credits directly reduce the amount of tax you owe, giving you an absolute reduction in tax liabiltiy
Tax reduction reduce the amount of income which is subject to taxes.
Available tax credits= Earned income tax credit, Child tax credit, Lifetime learning credit

Answer 2

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