All federal tax credits are calculated by multiplying the lowest federal income tax bracket rate of 15% by an indexed amount. True False

## Step 1: Definition of Tax Credit<br />### A tax credit is a dollar-for-dollar reduction in the tax owed. It's not directly tied to a specific tax bracket rate.<br />## Step 2: Calculation of Tax Credits<br />### Tax credits are calculated based on various factors stipulated by specific tax laws, not solely on the lowest tax bracket rate. Many are non-refundable and limited to the tax liability.