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9 October, 02:28

You have the option of deducting $2,000 as an "adjustment to income" or $250 tax credit on the back page. Which option will reduce you taxes by the largest amount?

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  1. 9 October, 02:45
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    "adjustment to income"

    Explanation:

    "adjustment to income" determine the actual gross income that can be taxed.

    In this situation tax credit is $ 250 which is less than deductions $ 2000.

    $ 2000 will reduce taxes by larger amount.
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