How much will a tax credit of $200 reduce Yasmin's income taxes payable?

A tax credit directly reduces the amount of income taxes an individual owes, dollar for dollar. In the case of Yasmin, a tax credit of $200 means that her taxes payable will be reduced by exactly that amount.

For instance, if Yasmin initially owes $1,000 in taxes, applying the $200 tax credit would decrease her total tax liability to $800. This is fundamentally different from a deduction, which would reduce taxable income and result in a less straightforward calculation of tax savings based on her tax rate.

Thus, the correct answer reflects the full value of the tax credit's impact, making it clear that a $200 tax credit reduces her income taxes payable by exactly $200.