What is the difference between a tax credit and a tax deduction?
a.
a tax credit represents money owed to you, while a tax deduction represents money you owe.
b.
a tax credit reduces the amount of money you must pay, while a tax deduction reduces your taxable income.
c.
a tax credit is owed money that collects interest, while a tax deduction is money that you do not have to pay.
d.
a tax credit occurs if you underpaid during the year, and a tax deduction occurs if you overpaid.