Please match the following 3 terms to their definitions.
Deduction
Taxable Income
Tax Credit
The amount of income used to calculate how much tax an individual owes the government. (Taxable Income)
Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax. (Tax Credit)
The portion of interest earned by the owner of a stock.
An amount of money that taxpayers can subtract from taxes owed to the government. (Deduction)
There are only three words but there four definitions so I just wanna know if this is correct
1 answer
You got deduction and tax credit backwards.