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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Definitions:

Rods

Specialized cells in the retina that are sensitive to low light levels and are responsible for peripheral and night vision.

Auditory Cortex

The part of the temporal lobe that processes auditory information in humans and other vertebrates, critical for hearing.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.

Conduction Deafness

Hearing loss that occurs when sound waves cannot be efficiently conducted through the outer ear canal to the eardrum and the tiny bones of the middle ear.