You work for a Senator who wants to add a new deduction or c…
You work for a Senator who wants to add a new deduction or credit for living expenses while a student is enrolled at a higher education institution. Both the credit and the deduction would be based on the total amount a school estimates as the cost for living expenses (not to exceed $15,000). Senator wants to know if it is better to have a 40% tax credit based on living expenses or provide for an above-the-line deduction based on the amount of the payments. Which one of the following answers is correct?
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