Question

Which of these people will be eligible for a tax deduction?

Gareth, who gets intrest income form banks
Nancy, who gets dividends from stock and mutual funds
Miles,who makes cash contributions to charities

Answer 1

Miles, who makes cash contributions to charities.

Answer 2

Answer: Last option is correct.

Explanation:

Tax deductions is the amount of tax which is saved from paying as a tax.

As it reduced the overall burden of tax liabilities and helps in saving tax.

Persons who are eligible for a tax deductions :

1) Miles, who makes cash contributions to charities

He is considered for a tax deduction as he is doing charity so, that amount which he is contributed as charity will be availed of tax deduction.

Miles can deduct money given to charitable organization.

Hence, Last option is correct.