Tax Credit
/ˈtæks ˌkrɛdɪt/
Definitions
- (n.) An amount that taxpayers may subtract directly from taxes owed to reduce their tax liability.
She qualified for a tax credit that reduced her income tax bill by $1,000.
Forms
- tax credits
Related terms
See also
Commentary
Unlike tax deductions, tax credits reduce tax owed dollar-for-dollar, making them a more direct form of tax relief.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.