tax credit

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tax credit

n
(Social Welfare) (in Britain) a social security benefit paid in the form of an additional income tax allowance
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.tax credit - a direct reduction in tax liability (not dependent on the taxpayer's tax bracket)
reduction, step-down, diminution, decrease - the act of decreasing or reducing something
References in periodicals archive ?
The credit is the lesser of (1) the excess of the total allowable nonrefundable personal credits (including the child tax credit) over the total allowable nonrefundable personal credits (excluding the child tax credit) or (2) the excess of all credits against tax (except taxes withheld on wages, taxes withheld at source on nonresident aliens and credits for certain uses of gasoline and special fuels) over the sum of the regular tax and Social Security taxes (employee portion).
J's total credits against tax are $1,850 ($850 (nonrefundable) + $1,000 EIC).