10 A tax credit A is not the same as a tax deduction B is th

10. A tax credit A. is not the same as a tax deduction. B. is the same as a tax deduction. C. is never calculated on federal tax returns D. only applies to the CCTB

Solution

10. Option A.

Explanation: A tax credit is not the same as a tax reduction.

A tax deduction is the result of exemptions that are tax deductible in nature as a result of which there will be a reduction in your taxable income. Tax deduction depends on the mariginal tax rate of the tax payer, which increases with an increase in income. Unlike tax deductions, tax credits are deducted from the tax liability that you possess. Tax credit reduces taxes directly. it doesn\'t depend on tax rates.