Tax-exempt income has a greater financial benefit than tax-deferred income.

Question

Quizplus · Accepted Answer

Tax-exempt income means that the income is not subject to income tax at all, which can result in a higher net income for the individual or company. Tax-deferred income means that the income is not subject to income tax until a later time, but it will still be taxed eventually. Therefore, tax-exempt income has a greater financial benefit than tax-deferred income.

Tax-Exempt Income Has a Greater Financial Benefit Than Tax-Deferred Income