Your neighbor Drew has come to you for advice. Drew found out he can either take a tax deduction of $8,000 or a tax credit of $8,000 this year. He’s not sure what that means or what he should do. He made $40,000 this year and his tax rate is a flat 5%. Give Drew some helpful advice in the form of an email below. Make sure to let him know which he should do and why. PLEASE HELP

Question

02-02-2021
SAT

Answered

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Your neighbor Drew has come to you for advice. Drew found out he can either take a tax deduction of $8,000 or a tax credit of $8,000 this year. He’s not sure what that means or what he should do. He made $40,000 this year and his tax rate is a flat 5%. Give Drew some helpful advice in the form of an email below. Make sure to let him know which he should do and why. PLEASE HELP

Sagot :

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