ECONOMICS

A person who earns $30,000 per year pays $3,000 in tuition to go back to college. As a result, her total income tax bill is reduced from $6,000 to $3,000.
This is an example of a __

A. tax deduction
B. tax credit
C. tax dependent
D. tax assessment

This is a kind of special incentive that allows some taxpayers to subtract the amount of the credit they have accrued from the total they owe the state.

Hence, when the total income tax bill is reduced from $6,000 to $3,000, it is an example of tax credit.

Therefore, the Option B is correct.

**ECONOMICS** A person who earns $30,000 per year pays $3,000 in tuition to go back to college. As a result, her total income tax bill is reduced from $6,000 to $3,000. This is an example of a __ A. tax deduction B. tax credit C. tax dependent D. tax assessment

Respuesta :

What is a tax credit?

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ECONOMICS

A person who earns $30,000 per year pays $3,000 in tuition to go back to college. As a result, her total income tax bill is reduced from $6,000 to $3,000.
This is an example of a __

A. tax deduction
B. tax credit
C. tax dependent
D. tax assessment