_____ 14. A $100 tax deduction is more valuable to a taxpayer than a $100 tax credit.

Question

Quizplus · Accepted Answer

A tax credit is more valuable to a taxpayer than a tax deduction because a tax credit reduces the amount of tax owed dollar-for-dollar, whereas a tax deduction only reduces the taxpayer's taxable income. So a $100 tax credit reduces the taxpayer's tax liability by $100, while a $100 tax deduction only reduces the taxpayer's taxable income by $100, resulting in a smaller reduction in tax liability.

_____ 14 a $100 Tax Deduction Is More Valuable to a a Taxpayer