You are in the 25% marginal tax bracket. You have the option of deducting $2,000 as an “adjustment to income” on the front page of Form 1040, or you can take a $750 tax credit on the back page. Which option will reduce your annual income taxes by the largest amount?
A. Deduct the $2,000 as an adjustment to income
B. Take the $750 tax credit
C. The two options are equivalent.
D. All of the above (wait, what?)