11. This year, teachers can eam a $250 tax credit on money they spend in their classrooms. How will this tax credit affect the teachers' tax returns? A. The $250 will come directly off of the amount of taxes the teachers owe.
B. The $250 will be subtracted from the teachers' gross incomes.
C. This credit will put them in higher tax brackets.
D. This credit is not big enough to make any impact on the teachers' taxes.

A. The $250 will come directly off of the amount of taxes the teachers owe.

Explanation:

When given a tax credit of a certain amount, it means that you can deduct that amount from the taxes you owe which means that the taxes you are to pay will be reduced. If you received a tax credit of $500 for instance and you owed taxes of $2,000, your taxes would become $1,500.

In this scenario therefore, with the teachers receiving a tax credit of $250, taxes that the teachers owe will be reduced by $250.

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