Please match the following 3 terms to their definitions.
Deduction
Taxable Income
Tax Credit
The amount of income used to calculate how much tax an individual owes the government. (Taxable Income)
Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax. (Tax Credit)
The portion of interest earned by the owner of a stock.
An amount of money that taxpayers can subtract from taxes owed to the government. (Deduction)
There are only three words but there four definitions so I just wanna know if this is correct
You got deduction and tax credit backwards.
Based on the definitions you provided, three terms are correctly matched with their definitions:
1. Deduction: An amount of money that taxpayers can subtract from taxes owed to the government.
2. Taxable Income: The amount of income used to calculate how much tax an individual owes the government.
3. Tax Credit: Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax.
However, the fourth definition you provided, "The portion of interest earned by the owner of a stock," does not match any of the given terms. If you need help finding the correct match for this definition, please provide more details or clarify the term you are referring to.