TAX CREDITS
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EA Exam 2017 Part 1 - Unit 14: Tax Credits ACTUAL QUESTIONS AND CORRECT ANSWERS Tax Credit: - CORRECT ANSWERSReduces a taxpayers liability on a dollar for dollar basis. Why is a tax credit more valuable than a tax deduction? - CORRECT ANSWERSA tax deduction of the same dollar amount only reduces the amount of taxable income. A tax credit reduces a taxpayers liability. What are the two main types of tax credits? - CORRECT ANSWERSRefundable or Non-refundable Common nonrefundabl...
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EA Exam 2017 Part 1 - Unit 14: Tax Credits ACTUAL QUESTIONS AND CORRECT ANSWERS Tax Credit: - CORRECT ANSWERSReduces a taxpayers liability on a dollar for dollar basis. Why is a tax credit more valuable than a tax deduction? - CORRECT ANSWERSA tax deduction of the same dollar amount only reduces the amount of taxable income. A tax credit reduces a taxpayers liability. What are the two main types of tax credits? - CORRECT ANSWERSRefundable or Non-refundable Common nonrefundabl...