Mathematics

Laney Frye

13 February, 13:48

What is the difference between a tax credit and a tax deduction?

a.

A tax credit represents money owed to you, while a tax deduction represents money you owe.

b.

A tax credit reduces the amount of money you must pay, while a tax deduction reduces your taxable income.

c.

A tax credit is owed money that collects interest, while a tax deduction is money that you do not have to pay.

d.

A tax credit occurs if you underpaid during the year, and a tax deduction occurs if you overpaid.