question 3 of 8\nwhat is the key difference between a deduction and a credit?\nselect a response.\ndeductions…

question 3 of 8\nwhat is the key difference between a deduction and a credit?\nselect a response.\ndeductions are used for future tax bills, and credits are used to help with past tax bills.\ndeductions reduce the amount of income that can be taxed, and credits reduce the amount of taxes you owe.\ndeductions report your spending, and credits report how much you borrowed.\ndeductions refer to money spent on goods, and credits refer to money spent on services.

question 3 of 8\nwhat is the key difference between a deduction and a credit?\nselect a response.\ndeductions are used for future tax bills, and credits are used to help with past tax bills.\ndeductions reduce the amount of income that can be taxed, and credits reduce the amount of taxes you owe.\ndeductions report your spending, and credits report how much you borrowed.\ndeductions refer to money spent on goods, and credits refer to money spent on services.

Answer

Brief Explanations:

Deductions lower taxable income, while credits reduce the actual tax liability. Deductions are amounts subtracted from income to arrive at taxable income, and tax - credits are amounts directly subtracted from the tax owed.

Answer:

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