3. are tax credits better than deductions? why or why not?

Brief Explanations:

Tax credits directly reduce tax liability dollar - for - dollar. Tax deductions reduce taxable income, and the actual tax savings depend on the tax rate. So, in general, tax credits are better as they provide a more certain and often larger reduction in the amount of tax owed.

Answer:

In general, tax credits are better. They directly reduce tax liability dollar - for - dollar, while tax deductions reduce taxable income and the tax savings depend on the tax rate.