Which of the following credits is not a credit that reduces the tax calculated on taxable income?...

Question:

Which of the following credits is not a credit that reduces the tax calculated on taxable income?

a. Dependency credit.

b. Child tax credit.

c. Earned income credit.

d. Credit for estimated tax payments.

Credit:

The tax credit is the amount under the tax laws when the government lets the taxpayer deduct a certain pre-defined amount after satisfying the criteria set up by the government from their tax liability.

Answer and Explanation: 1

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The right choice is Option d. Credit for estimated tax payments.

This option is correct because there is no such term issued by the IRS called...

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Income Tax: Tax Liability & Deductions

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Chapter 3 / Lesson 5
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Learn what income tax liability is. Find out what taxable and adjusted gross income are, discover how to calculate tax liability, and examine common deductions.


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