1. How is a tax credit different from a tax deduction? 2. If you were in the 28% marginal tax…

1. How is a tax credit different from a tax deduction?

2. If you were in the 28% marginal tax bracket and you could
choose either a $1,000 tax credit or a $3,000 tax deduction, which would give
you the most tax savings? Why?

3. What is the statute of limitations, and what role does it
play in the filing of tax returns?