A ________ is a direct reduction of taxes whereas a ________ reduces the taxable income before taxes.
A) foreign tax credit; domestic tax credit
B) tax deduction; tax credit
C) tax credit; tax deduction
D) none of the above

Question

Quizplus · Accepted Answer

A tax credit directly reduces the amount of tax owed, dollar for dollar, whereas a tax deduction lowers the amount of income subject to tax, thus indirectly reducing the tax owed.

A ________ Is a Direct Reduction of Taxes Whereas a ________

A Is a Direct Reduction of Taxes Whereas a