Which of the Following Statements Regarding Tax Credits Is True

question 71

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 adjusted gross income (AGI) based on the number of persons supported by the taxpayer's income.
• C) They represent the income remaining after subtracting all allowable adjustments to (gross) income.
• D) They are personal expenditures that can be deducted from adjusted gross income (AGI) when determining taxable income.
• E) They are deductions from a taxpayer's tax liability that directly reduce his or her taxes due.

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