Explore BrainMass
Share

Credit vs. deductions

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Why has Congress moved towards credits rather than deductions in recent years?
What do you know about tax provisions that might encourage small business?

© BrainMass Inc. brainmass.com October 17, 2018, 3:30 am ad1c9bdddf
https://brainmass.com/business/accounts-receivable-management/credit-vs-deductions-425219

Solution Preview

Why has Congress moved towards credits rather than deductions in recent years?

Congress has been moving towards tax credits rather than tax deductions because a tax credit lowers the persons tax bill dollar for dollar. A deduction on the other hand just shaves off money from a persons taxable ...

Solution Summary

Why has Congress moved towards credits rather than deductions in recent years?
What do you know about tax provisions that might encourage small business?

$2.19
Similar Posting

Taxation: Compute tax savings for two filing alternatives for Eileen

Eileen files as head of household and earns a salary of $75,000. She has a 4 yr old dependent daughter for whom she pays $5000 in annual day care expenses so that she can go to work. Her employer offers a dependent care flexible spending arrangement (FSA) in which she could contribute up to $5000 on a pretax (before FICA and income tax) basis. If she does not participate in the FSA, Eileen can claim the dependent child care credit for these expenses. Eileen has no other income or deductions. Compute the tax savings of these two alternatives and make a recommendation to Eileen.

Please use Excel.

View Full Posting Details