Taxes question?

Question

Ali is in the 35% marginal tax bracket and caims the standard tax deductions. How much will his tax bill be reduced if he qualifies for a $592 tax credit?

Answer 1

Probably $592, or the amount of tax due, or the amount of AMT tax allowance left if the credit is not AMT-eligible, or....

Oh, never mind.  Do your own homework.

Answer 2

the tax credit will generally reduce the regular income tax liability $ for $. If its a foreign tax credit, then the math will change. The amount of credit that could be availed in the current tax year, would depend on the proportion of the foreign source income to the total global income of the taxpayer.

Ofcourse, you will also need to see the AMT implications.