what is the difference between a tax credit and a tax deduction? a tax credit represents money owed to you…

what is the difference between a tax credit and a tax deduction? a tax credit represents money owed to you, while a tax deduction represents money you owe. a tax credit reduces the amount of money you must pay, while a tax deduction reduces your taxable income. a tax credit is owed money that collects interest, while a tax deduction is money that you do not have to pay. a tax credit occurs if you underpaid during the year, and a tax deduction occurs if you overpaid.

what is the difference between a tax credit and a tax deduction? a tax credit represents money owed to you, while a tax deduction represents money you owe. a tax credit reduces the amount of money you must pay, while a tax deduction reduces your taxable income. a tax credit is owed money that collects interest, while a tax deduction is money that you do not have to pay. a tax credit occurs if you underpaid during the year, and a tax deduction occurs if you overpaid.

Answer

Brief Explanations:

Un crédito fiscal es una reducción directa en el monto del impuesto que se debe pagar, mientras que una deducción fiscal reduce la renta gravable, lo que a su vez puede reducir el monto del impuesto calculado sobre esa renta.

Answer:

B. A tax credit reduces the amount of money you must pay, while a tax deduction reduces your taxable income.