Of the Following Statements About Tax Credits, Which One Is

question 73

Multiple Choice

Of the following statements about tax credits, which one is correct?

• A)They are deducted from total income and are effectively not subject to tax.
• B)They reduce tax by the same amount regardless of a taxpayer's marginal tax rate.
• C)They are deducted from Net Income For Tax Purposes and are effectively not subject to tax.
• D)Their impact is greater for taxpayers with a higher marginal tax rate.

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