Answer the following questions:\ a. Explain the distinction between a deduction and a credit.\ b. Which is worth more, a

$200

deduction or a

$200

credit?\ c. Explain the difference between refundable and nonrefundable credits.\ a. Explain the distinction betweer a deduction and a credit.\ A deduction is an amount that is subtracted from gross income (or adjusted gross income), while a credit is\ b. Which is worth more, a

$200

deduction or a

$200

credit?\ In general, a

$200

is worth more than a

$200

because the results in a

$200

tax savings. The savings from a is less than

100%

of

$200

, depending on the tax bracket that applies to the taxpayer.\ c. Explain the difference between refundable and nonrefundable credits.\ If a refundable credit exceeds the taxpayer's tax liability the taxpayer

v

If a nonrefundable credit exceeds the taxpayer's tax liability the taxpayer

v

Answer the following questions: a. Explain the distinction between a deduction and a credit. b. Which is worth more, a $200 deduction or a $200 credit? c. Explain the difference between refundable and nonrefundable credits. a. Explain the distinction betweer a deduction and a credit. A deduction is an amount that is subtracted from gross income (or adjusted gross income), while a credit is b. Which is worth more, a $200 deduction or a $200 credit? In general, a $200 is worth more than a $200 because the results in a \$200 tax savings. The savings from a is less than 100% of $200, depending on the tax bracket that applies to the taxpayer. c. Explain the difference between refundable and nonrefundable credits. If a refundable credit exceeds the taxpayer's tax liability the taxpayer will If a nonrefundable credit exceeds the taxpayer's tax liability the taxpayer will