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Various tax credits have been established to help reduce the tax liability of certain groups of...

Various tax credits have been established to help reduce the tax liability of certain groups of taxpayers. Give an example of a tax credit discussed in Chapter 9 and explain why you think Congress enacted that specific credit.

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Answer #1

Elderly and Disabled Persons Credit

Individuals can receive a 15 percent credit against their tax for the credit for the elderly. An individual must have reached age 65 before the end of the year or have retired on disability before the close of the year and must have been permanently and totally disabled when he or she retired to receive the credit.

The congress has established the above referred credit to give relief to elderly and disabled persons so that they can have equal opportunities in various aspects of life.

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