Which of the following would offset your tax liability in a direct dollar for dollar manner and may actually increase your tax refund beyond the amount paid during the tax year?

Question

Quizplus · Accepted Answer

Tax credits offset tax liability in a direct dollar-for-dollar manner and can actually increase your tax refund beyond the amount paid during the tax year. Tax exemptions and deductions reduce taxable income and do not guarantee a dollar-for-dollar reduction in tax liability. Tax adjustments are not an option in the context of this question.

Which of the Following Would Offset Your Tax Liability in a Direct