Given the choice between a $1 tax deduction and a $1 tax credit,you should

Question

Quizplus · Accepted Answer

A tax credit directly reduces the amount of tax you owe, while a tax deduction only reduces your taxable income. Therefore, a tax credit is always more valuable than a tax deduction, as it results in a larger reduction in your tax liability. Additionally, tax credits are often designed to benefit specific groups or activities, such as education or renewable energy, making them even more valuable if they apply to you.

Given the Choice Between a $1 Tax Deduction and a $1