- Tax Credit
An amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government. The value of a tax credit depends on what the credit is being provided for, and certain types of tax credits are granted to individuals or businesses in specific locations, classifications or industries.
Unlike deductions and exemptions, which reduce the amount of your income that is taxable, tax credits reduce the actual amount of tax owed. Governments may grant a tax credit to promote a specific behavior, such as replacing older appliances with more efficient ones, or to help disadvantaged taxpayers by reducing the total cost of housing.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
tax credit — n: an amount that may be subtracted from the sum of tax otherwise due and that is distinguished from a deduction applied to gross income in the calculation of taxable income compare exemption Merriam Webster’s Dictionary of Law. Merriam Webster.… … Law dictionary
Tax-Credit — [tæks kredɪt, englisch], ein Abzug von der Steuerschuld, durch den entweder individuellen Verhältnissen Rechnung getragen beziehungsweise spezielle Steuervergünstigungen gewährt werden sollen oder andere Steuern zur Vermeidung einer… … Universal-Lexikon
tax credit — tax credits N COUNT A tax credit is an amount of money on which you do not have to pay tax. The president proposed to provide tax credits to businesses that allow workers time off … English dictionary
Tax credit — The term tax credit describes two different concepts:*The first is a recognition of partial payment already made towards taxes due. *The second is a state benefit paid to employees through the tax system, which has the effect of increasing… … Wikipedia
tax credit — A direct dollar for dollar reduction in tax allowed for expenses such as child care and R&D for building low income housing. Compare tax deduction. Bloomberg Financial Dictionary Additional amount on dividends paid by a company resident in France … Financial and business terms
tax credit — 1) The tax allowance associated with the dividend paid by a company. The shareholder is given allowance for the tax paid at source by the tax credit, at the same rate, 10/90; i.e. a dividend of £90 received by the shareholder had an associated… … Accounting dictionary
tax credit — 1) The tax allowance associated with the dividend paid by a company. The shareholder is given allowance for the tax paid at source by the tax credit, at the same rate, 10 90; i. e. a dividend of £90 received by the shareholder has an associated… … Big dictionary of business and management
tax credit — An amount subtracted from an individual s or entity s tax liability to arrive at the total tax liability. A tax credit reduces the taxpayer s liability dollar for dollar, compared to a deduction which reduces taxable income upon which the tax… … Black's law dictionary
tax credit — /ˈtæks krɛdət/ (say taks kreduht) noun a credit received by a taxpayer in relation to certain items of expenditure or income, and deducted directly from income tax otherwise payable … Australian English dictionary
tax credit — A credit against income tax itself, as distinguished from a deduction which applies only to reduce the income. The sum owing a taxpayer for overpayment. Internal Revenue Code § 6402(a) … Ballentine's law dictionary