Finance Brain
Courses
Home
Sign in
← Tax Credits
1 / 4
Question
A taxpayer is in the 22% bracket. How much tax does a $1,000 deduction save them compared to a $1,000 credit?
1
They save the same amount either way
2
A deduction saves $220 while a credit saves $1,000, so the credit saves $780 more
3
A deduction saves more because it reduces taxable income
4
A credit saves $780 more than the deduction
Press 1–4 to pick an answer
Finance Brain