Suppose a student is in the 10% tax bracket. once he begins college, he can choose a $3400 deduction or a $1000 credit to offset tuition and fees. which option will reduce his tax bill by the greater amount? what is the difference in his savings between the two options?
choose the correct answer below and, if necessary, fill in the answer box to complete your choice.
a.
using the credit saves $
nothing compared to using the deduction.
b.
using the deduction saves $
nothing compared to using the credit.
c.
there is no difference in savings between the options.