Which of the Following Statements Regarding Tax Credits Is True

question 40

Multiple Choice

Which of the following statements regarding tax credits is true?

• A)They are deductions that depend on the taxpayer's filing status, age, and vision and that can be claimed by a taxpayer whose total itemized deductions are small.
• B)They are deductions from the adjusted gross income based on the number of persons supported by the taxpayer's income.
• C)They represent the income remaining after subtracting all allowable adjustments to income from the gross income.
• D)They are personal expenditures that can be deducted from adjusted gross income when determining taxable income.
• E)They are deductions from a taxpayer's tax liability that directly reduce the person's taxes due.

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Definitions:

Melatonin

A hormone produced by the pineal gland that regulates sleep and wakefulness.

Melatonin

A substance secreted by the pineal gland that controls the patterns of sleeping and waking.

Dopamine

A neurotransmitter associated with pleasure, movement, and attention in the brain.

Cortisol

Cortisol is a steroid hormone released by the adrenal glands in response to stress and has multiple functions including regulating metabolism and immune response.