A) A tax credit reduces the amount of tax owed, while a tax deduction reduces the amount of taxable income
B) A tax credit reduces the amount of taxable income, while a tax deduction reduces the amount of tax owed
C) A tax credit and a tax deduction both reduce the amount of tax owed
D) A tax credit and a tax deduction both reduce the amount of taxable income
Answer: A) A tax credit reduces the amount of tax owed, while a tax deduction reduces the amount of taxable income
