Which of the following statements concerning tax credits is true?

Question

Quizplus · Accepted Answer

Tax credits are generally more beneficial than tax deductions because they directly reduce the tax liability, while deductions only reduce taxable income. The tax benefit a taxpayer receives from a credit does not depend on their marginal tax rate, and refundable tax credits can exceed a taxpayer's gross tax liability, resulting in a refund. Therefore, statement A and B are false, and statement C is true.

Which of the Following Statements Concerning Tax Credits Is True