Question and answer
4. Demonstrate the differences resulting from a $1,000 tax credit versus a $1,000 tax deduction for a single taxpayer in the 25% tax bracket with $40,000 of pre-tax income.
A deduction is simply a reduction in the amount of taxable income. Therefore, if you claim a $1000 deduction, you will reduce your taxable income by the same amount. [ If you are in a 25 percent tax bracket then your total tax savings from this $1000 reduction in taxable income would be $250 (25% of $1000). On the other hand a tax credit is a dollar for dollar reduction in your tax liability.
Therefore if you were able to take a $1000 tax credit, you would reduce your tax liability by the full amount of the credit, or $1000...a much better deal. ]
Expert answered|akosijanryl|Points 56|
Question
Asked 8/18/2013 1:35:22 AM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
25,661,528 questions answered
Popular Conversations
factorization of 10x - 3 - 3x 2? User: n 4 - 1
Weegy: (n + 8)(n - 2) = n^2 - 2n + 8n - 16; = n^2 + 6n - 16 User: Factor a 3 - 3 + 3a 2 - a. User: Factor 75t 2 ...
6/30/2016 12:45:49 AM| 3 Answers
Solve (x + 1 -3). User: Find the distance between the points (-4, ...
Weegy: Distance between the points (4, -1) and (-5, 2) = sqrt [(-5-4)^2 +(2- 1)^2] = sqrt [81+9] = sqrt[90] = 9.4868 ...
6/30/2016 7:13:59 AM| 2 Answers
Bacteria are important in sewage disposal because they _____. A. ...
Weegy: d. form membranes around toxins in sewage User: Organisms that grow in the absence of free oxygen are known as ...
6/30/2016 10:07:46 AM| 2 Answers
What effect did the oil crisis have on U.S. energy policy? A. The ...
Weegy: B. More attention has since been paid to energy conservation. was an effect of the oil crisis User: Which ...
6/30/2016 10:13:01 AM| 2 Answers
What is the slope of the line passing through (1, 2) and (3, 8)? ...
Weegy: The slope of a line perpendicular to the line whose equation is y = 2x + 5 is -1/2. The slope of that line is ...
6/30/2016 2:48:13 PM| 2 Answers
Factor x^10 - y^2.
6/30/2016 12:29:14 AM| 1 Answers
Weegy Stuff
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 260] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 0 [Total 0] Ratings 0 Comments 0 Invitations 0 Offline
S
Points 0 [Total 0] Ratings 0 Comments 0 Invitations 0 Offline
S
Points 0 [Total 0] Ratings 0 Comments 0 Invitations 0 Offline
Points 0 [Total 0] Ratings 0 Comments 0 Invitations 0 Offline
Points 0 [Total 0] Ratings 0 Comments 0 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.