You have new items in your feed. Click to view.
Question and answer
Q: 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: 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.
0 questions answered
Popular Conversations
Calculate the product 1/3 and 1/5
Weegy: The product of 1/3 and 1/4 is 1/12. Solution: 1/3 * 1/4 = 1/12
5/23/2017 9:39:31 PM| 1 Answers
Which type of tax is applied only to particular goods? A. excise ...
Weegy: Excise tax is applied only to particular goods.
5/23/2017 7:13:31 PM| 0 Answers
In “A Few Don’ts,” Pound encourages the use of __________instead of ...
Weegy: In A Few Don'ts, Pound encourages the use of The Concrete instead of the vagueness of abstractions. User: ...
5/22/2017 11:51:10 AM| 0 Answers
Giving human characteristics to objects or ideas is
Weegy: Giving human characteristics to objects or ideas is PERSONIFICATION.
5/19/2017 10:58:38 PM| 0 Answers
Motivation refers to forces that
Weegy: Motivation refers to forces that: energize, direct, and sustain a person's efforts.
5/19/2017 10:41:24 PM| 0 Answers
The pitcher does not have the responsibility of striking out players ...
Weegy: The pitcher does not have the responsibility of striking out players at bat. FALSE.
5/15/2017 8:53:53 PM| 0 Answers
Rape that involves multiple attackers, strangers, weapons, or a ...
Weegy: Rape that involves multiple attackers, strangers, weapons, or a physical beating is Aggravated Rape.
5/15/2017 7:06:49 PM| 0 Answers
Weegy Stuff
S
Points 26 [Total 26] Ratings 0 Comments 26 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 10 [Total 366] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
P
P
L
P
P
P
Points 7 [Total 1730] Ratings 0 Comments 7 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 2 [Total 467] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
P
P
L
P
P
Points 1 [Total 1637] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.