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 directly reduce the tax liability dollar for dollar, and in some cases, may increase the tax refund beyond the amount paid during the tax year. Tax exemptions and deductions reduce taxable income, but not the tax liability in a direct manner. Tax adjustments are not a real tax term.

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