A credit is different from a deduction in that the credit reduces the base amount subject to the tax, whereas a deduction directly reduces the tax liability itself.

Name: A credit is different from a deduction in that the credit reduces the base amount subject to the tax, whereas a deduction directly reduces the tax liability itself.
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A credit directly reduces the tax liability itself, whereas a deduction reduces the amount of income subject to tax.

A Credit Is Different from a Deduction in That the Credit