Decide whether the following statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain your reasoning. Assume 2021 tax rates and policies. Tori had a calculated tax bill (before credits) of $4725 but has two children who qualify for a refundable tax credit of $7200. Therefore, she not only pays no tax, but receives money from the government. Choose the correct answer below. O A. The statement does not make sense because the tax bill would be reduced to zero, but no refund would be given. B. The statement does not make sense because the credits reduce her taxable income, not her tax bill. O C. The statement makes sense because her credits are refundable and larger than her tax bill. D. The statement does not make sense because her credits are less than her tax bill.
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Deduction Standard 35% 24% 224 12% 10% Tax Rate Tax Rates 7.65% on the first $142,800 of income from wages $12.550 above $523,600 up to S523,600 up to $209,425 up to S164,925 up to $86,375 up to $40,525 1.45% on any income from wages In excess of S142.800 Single Print $25,100 above $628,300 up to $628,300 up to $418,850 up to $329,850 up to$172,750 up to $81,050 up to $19,900 Jointly. Married Filing $12.550 above S314.150 up to $314,150 up to $209,425 up to $164,925 up to $86.375 up to $40,525 up to $9950 Separately Married Filing $18.800 above $523,600 up to $523,600 up to $209,400 up to $164,900 up to $86,350 up to $54,200 up to $14,200 Household Head of
