You currently earn $62,000 a year and you must pay $12,000 in federal income tax. You are thinking of installing solar panels and discover it will cost you $12,300 to get them installed. You learn about the Investment Tax Credit (ITC), also known as the federal solar tax credit, which allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes.
a) How much can you deduct from your taxes?
$
b) What is your taxable liability now?
$
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You currently earn $62,000 a year and you must pay $12,000 in federal income tax. You are thinking o...
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