Tax Break


Tax Break
A tax break is a savings on a taxpayer's liability. A tax break provides a savings through tax deductions, tax credits, tax exemptions and other incentives. An example of a tax break is the First-Time Homebuyer Tax Credit which provided a tax credit up to $8,000 for qualified purchasers of primary residences on their 2009 and 2010 tax returns.

Tax breaks can greatly reduce a taxpayer's liability. Deductions are expenses that can be subtracted from gross income to reduce taxable income; credits reduce tax liability dollar-for-dollar and have a greater impact than deductions; exemptions occur where a tax for a certain item or type of income is reduced or eliminated.


Investment dictionary. . 2012.

Look at other dictionaries:

  • tax break — ˈtax break noun [countable] TAX ECONOMICS a special reduction in taxes that the government allows for a particular purpose: • A temporary investment tax credit would provide a tax break to businesses that invest in equipment. * * * tax break UK… …   Financial and business terms

  • tax break — tax ,break noun count a reduction in the tax that you must pay: a tax break for college students …   Usage of the words and phrases in modern English

  • tax break — tax breaks N COUNT If the government gives a tax break to a particular group of people or type of organization, it reduces the amount of tax they have to pay or changes the tax system in a way that benefits them. [mainly AM] Today they ll… …   English dictionary

  • tax break — n a special reduction in taxes ▪ tax breaks for small businesses …   Dictionary of contemporary English

  • tax break — ► NOUN informal ▪ a tax concession or advantage allowed by government …   English terms dictionary

  • tax break — noun a tax deduction that is granted in order to encourage a particular type of commercial activity • Syn: ↑tax benefit • Hypernyms: ↑tax write off, ↑tax deduction, ↑deduction * * * tax break noun (informal) An opportunity legally available for… …   Useful english dictionary

  • tax break — UK / US noun [countable] Word forms tax break : singular tax break plural tax breaks informal a reduction in the tax that you must pay a tax break for college students …   English dictionary

  • Tax break — A tax break is a tax saving. This includes:* Tax exemption, an exemption from all or certain taxes of a state or nation in which part of the taxes that would normally be collected from an individual or an organization are instead foregone. * Tax… …   Wikipedia

  • tax break — noun (C) AmE a special reduction in taxes that the government allows for a particular purpose: a tax break for insulating your home …   Longman dictionary of contemporary English

  • tax break — tax discount, reduction of the tax burden …   English contemporary dictionary


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