tax credit

noun

: an amount of money that is subtracted from taxes owed
Families with children in college will receive a tax credit this year.

Examples of tax credit in a Sentence

Recent Examples on the Web Harris would also restore the American Rescue Plan’s expansion of the child tax credit to as much as $3,600, up from $2,000. Nik Popli, TIME, 23 Oct. 2024 Notably, the terms of the current child tax credit are set to expire at the end of tax year 2025. Lorie Konish, CNBC, 22 Oct. 2024 If nothing changes, the maximum amount of the child tax credit that may be refundable will be $1,700 in 2025. Kelly Phillips Erb, Forbes, 22 Oct. 2024 The incentives under Harris include an increase to the child tax credit, health care subsidies and assistance for first-time homebuyers. Sahil Kapur, NBC News, 21 Oct. 2024 See all Example Sentences for tax credit 

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Cite this Entry

“Tax credit.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax%20credit. Accessed 5 Nov. 2024.

Legal Definition

tax credit

noun
: 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
Last Updated: - Updated example sentences
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