what is the key difference between a deduction and a credit? deductions are used for future tax bills, and…

what is the key difference between a deduction and a credit? deductions are used for future tax bills, and credits are used to help with past tax bills. deductions reduce the amount of income that can be taxed, and credits reduce the amount of taxes you owe. deductions report your spending, and credits report how much you borrowed. deductions refer to money spent on goods, and credits refer to money spent on services.

what is the key difference between a deduction and a credit? deductions are used for future tax bills, and credits are used to help with past tax bills. deductions reduce the amount of income that can be taxed, and credits reduce the amount of taxes you owe. deductions report your spending, and credits report how much you borrowed. deductions refer to money spent on goods, and credits refer to money spent on services.

Answer

Brief Explanations:

Deductions lower taxable - income by reducing the base amount subject to tax. Tax credits directly reduce the amount of tax owed, providing a dollar - for - dollar reduction.

Answer:

B. Deductions reduce the amount of income that can be taxed, and credits reduce the amount of taxes you owe.