I have two questions here. Can you tell me which statements is true or false?

Question

a. Everything is included in gross income, unless it is specifically excluded from income. (True or False)
b. A tax credit provides for a greater tax benefit than a tax deduction. (True or False)

Answer 1

a. True. All income you receive is included, unless there is a law or part of the Internal Revenue Code that says it's not. Tax-Exempt interest or other such items specifically mentioned (and there's quite a few) are not included.

b. True. Tax credits are deducted directly against the tax you owe, while deductions are taken off of your taxable income (which your tax is calculated on). A $100 tax credit reduces the tax you owe by exactly $100, while a $100 tax deduction (which reduces your taxable income), may only reduce your tax by around $15 - $20 depending on your tax bracket.

Hope this helps!!

Answer 2

Up till capricorn, I agreed. But capricorn and pisces, I very, very, very, very strongly disagree. Here's why: The capricorns I understand are all very peaceable, quiet people. None could shoot a pisces for any purpose due to the fact that they are suitable, and so they could no longer bind and gag sag, for person who I knew had a excellent pal that used to be a sag and bought alongside good. This is simply too excessive for them I feel. They would accidently drown aries regardless that, considering the fact that from my observations, they dislike manipulate freaks and aries, even as an overly well chief, hates no longer being in manipulate. And I strongly disagree with the pisces factor. I'm a pisces, so I could understand, that even as pisces does get into main issue commonly, it's not honestly their fault quite often. I'm no longer being an escapist or denying this. I'm useless critical. We're too wary to be the purpose for main issue occuring. Also, could humans stop it with the 'pisces as weakling' mentality? I have a freakin black belt in tae kwon do. Weak? I feel no longer. I do not even love to play the susceptible character, actually, my peers say I'm a debate loving hard character (nonetheless actual that can or will not be). But I doubt that makes me susceptible. I would not hold out of Aries approach, I could actually be featuring new suggestions to Aries for he/she to recollect and lead (they would undoubtedly be the leaders). And no approach could I suck as much as leo or melanoma. I've had each as peers. I positioned myself as their identical, no longer their lowly fan membership chief. If it have been real my fault, I'd confess, for as a pisces, I do not consider that it is morally proper in charge matters that have been my fault on others. Aquarius additionally gave the impression iffy to me, however that is a rough one to give an explanation for. I appreciate that you simply agree regardless that, although I do not. After all, with a sparkling descirption like they deliver sag right here, what sag would not wish to a minimum of act find it irresistible used to be actual?

Answer 3

a is true.

b depends on the situation. if your AGI is high, then maybe you get more benefit out of tax deductions than tax creds.

Answer 4

True

True