All federal tax credits are calculated by multiplying the lowest federal income tax bracket rate by an indexed base figure.

Question

Quizplus · Accepted Answer

Federal tax credits are not calculated by multiplying the lowest federal income tax bracket rate by an indexed base figure. They are specific dollar amounts set by law for various qualifying expenses, such as education or energy-efficient home improvements, and are subtracted directly from the total amount of taxes owed, rather than affecting taxable income.

All Federal Tax Credits Are Calculated by Multiplying the Lowest