The direct dollar-for-dollar reduction of an individuals tax liability; compare...
Although tax is not actually deducted from certain types of income, you may be given a tax credit as if tax had actually been deducted. For example, you are given a lower rate tax credit on dividends you receive. The dividend you receive being treated as the net amount (after deduction of the tax credit).
A dollar-for-dollar reduction in the amount of taxes owed. Under certain conditions tax credits are allowed for low-income people over 65, individuals with disabilities, income tax paid to a foreign country, child care expenses, adoption costs, rehabilitation of historic properties, research and development, building low income housing, and providing jobs for economically disadvantaged people.
the amount that may be subtracted from the tax otherwise due.
The direct dollar-for-dollar reduction of an individual's or organization's tax liability (financial obligation, debt, claim or potential loss).
A provision of the tax code that specifies an amount by which a taxpayer's taxes will be reduced in return for some behavior.
Amount that can be deducted from the actual tax owed.
A dollar-for-dollar reduction in the amount of tax that is due. A tax credit is more valuable than a tax deduction of the same amount.
Incentives to invest in a development that reduce liability for taxes that otherwise would be incurred.
A reduction in the amount of taxes owed. For example, corporations are permitted a credit on U.S. taxes for taxes paid to foreign governments, and individuals could, for a number of years, claim a tax credit for a portion of expenditures for certain energy-saving home improvements. A tax credit is more valuable than a deduction of an equal amount because the credit results in a reduction in tax owed rather than a reduction in taxable income.
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.
A specific reduction in tax liability. For more information, click here.
A dollar-for-dollar amount that can be reduced from taxes. Credits are subtracted directly from the amount of owed taxes.
Under some health care reform proposals, an amount subtracted from one's tax liability to help them buy health insurance in the private market. The amount of the credit could vary according to age, health status or income. It could be paid even to those who owe no taxes (“refundable”) and could be paid even before the person files a tax return ("advanceable”).
a direct reduction in tax liability (not dependent on the taxpayer's tax bracket)
a credit that reduces the amount of taxes you must pay the Federal Government
a direct, dollar-for-dollar reimbursement from the state
a direct reduction in tax liability, independent of tax bracket
a direct reduction in the final tax bill
a direct reduction in your federal tax liability
a direct reduction of taxes due
a dollar-for-dollar deduction in the actual tax owed
a dollarfordollar reduction of taxes owed
a fixed amount subtracted directly from an individual's tax liability
a full refund, not a deduction
an amount deducted directly from federal income tax otherwise payable
an amount deducted from the actual amount of tax you have to pay each year
an amount of money you can subtract from your federal tax bill
an amount subtracted from that liability, reducing the amount that certain taxpayers must pay
an amount that is offset against the combined income levy
a provision that allows a reduction in tax liability by a specific dollar amount, regardless of income
a reduction in the total amount of taxes owed to the IRS
a subtraction from the amount of tax that a person owes, while a deduction reduces only the amount of income subject to tax
Amounts permitted, under various tax law provisions, to be deducted from the income tax calculated on taxable income and otherwise payable on a tax return, in determining the taxpayer's net tax liability. For this reason, they are of much greater value than income tax deductions.
A specific reduction in tax liability. The taxpayer applies the credit after the amount of tax liability (taxes owed) is calculated. For example, a taxpayer with a liability of $10,000 and a tax credit of $500 would be required to pay $9,500 in taxes owed.
On a tax return, money you have already paid for taxes is called a credit. A credit reduces the gross amount of your taxes due. There are other types of tax credits, such as a child-care tax credit.
A fixed amount that reduces the taxes payable to all taxpayers regardless of their income level, or marginal tax rate.
Dividends payments are received in net because companies are required to deduct tax when paying out a dividend. If your rate of tax is lower than the rate paid by the company, then you are allowed to receive the difference as tax credit.
Allowance granted by the public treasury amounting to 50% of the amount of dividend paid.
Tax credits reduce taxes payable to the same extent for all taxpayers, regardless of their income level and marginal tax rate. Deductions from taxable income, however, are more valuable as your income and tax rate increases.
As in the federal Hope and Lifetime Learning Tax Credits, means a credit against a tax liability. The tax filer is able to subtract the amount of credit from tax liability. The tax filer must have tax liability to receive the Hope or Lifetime credit (this is what is meant by a "nonrefundable" credit).
A "dollar for dollar" reduction on taxes owed.
A dollar-for-dollar reduction in the tax. Can be deducted directly from taxes owed.
Tax credits are subtracted directly from the tax a family owes, rather than reducing taxable income like a tax deduction. A family must file a tax return and owe taxes in order to claim these higher education credits available through the Taxpayer Relief Act of 1997.
Tax credits, the most appealing type of tax deductions, are subtracted directly, dollar for dollar, from your income tax bill.
A direct reduction in the amount of tax liabilities.
When companies pay dividends they send each shareholder a dividend warrant. The warrant shows the amount of the dividend and also a figure for a tax credit. For basic-rate tax payers the tax credit covers the income tax due on the dividend.
A deduction from taxes owed.
The amount which an ISA manager can reclaim from the Inland Revenue in respect of share dividends received. This is 10% of the amount received until April 2004, when it will no longer be available.
This is dollar for dollar credit that a taxpayer can deduct from their tax liability. For example, if at the end of the year you owed $3,400 in taxes, however you had a $500 child-care tax credit, you could apply that credit to the $3,400 tax liability and reduce the liability down to $2,900. The are various types of Government approve tax credits.
An amount allowed as an offset against income tax for a particular tax year. A tax credit results in a direct dollar-for-dollar reduction in taxes due. Section 48 of the Internal Revenue Code (Code) provides for a 10-percent reforestation investment tax credit on up to $10,000 per year of establishment costs, for a maximum annual credit of $1,000. Also see “Amortize” and ‘Establishment cost.
A direct dollar for dollar offset of tax liability (vs. a deduction which offsets taxable income). See: Deduction.
As compared to a tax deduction (which reduces taxable income), tax credits reduce actual tax by one dollar for each dollar of tax credit.
An item that directly reduces the amount of income tax paid by offsetting other income tax liabilities.
Is a sum of money that is paid to those in financial need as a bursary– i.e. it need not be paid back. Working Families Tax Credit is paid by the to help working families manage better. The amount paid depends on the families' situation.
an amount you can deduct from the tax you owe
The Taxpayer Relief Act of 1997, created tax benefits to assist students and parents in meeting the cost of higher education. The Hope Scholarship and Lifetime Learning tax credits are non-refundable credits that provide a direct reduction in the amount of income tax paid.
A reduction against income tax payments that would otherwise be due. Contrast with tax deductions that reduce taxable income .
an amount which can be counted against the income tax you have to pay on dividends. The tax credit is currently one-ninth of the dividend which means lower- and basic-rate taxpayers have no further tax to pay according to UK law at present.
An income tax credit that directly reduces theamount of income tax paid by offsetting other income tax liabilities.
Until April 2004, an ISA or PEP fund manager could claim a 10% tax credit attaching to UK share dividends from the UK Inland Revenue. Now no longer available.
A tax deduction reduces tax liability by the percentage of the marginal tax bracket for the taxpayer, while a tax credit reduces the taxable amount due dollar-for-dollar. In many cases, tax credits offer incentive to support social change (e.g., renovation of historical property, jobs for the disadvantaged, research and development, and constructing low-income housing).
An amount by which tax owed is reduced directly.
A dollar for dollar reduction in the tax payment required from a person.
The amount an ISA manager can reclaim from HM Revenue & Excise in respect of share dividends received. This was 10% of the amount received until April 2004, since when it has no longer been available.
The amount which an ISA manager can reclaim from the Inland Revenue in respect of share dividends received. This 10% tax credit was abolished in April 2004.
Within the Australian, Canadian, United Kingdom, and United States tax systems, a tax credit is an item which is treated as a payment already made towards taxes owed. A similar concept exists under different names in the French tax system. It reduces tax liability unit-for-unit, in contrast to a tax deduction, tax allowance or tax relief which reduce taxable income.