Tax credit

Tax credit,

Definition of Tax credit:

  1. An amount of money that can be offset against a tax liability.

  2. Prepaid income tax (such as that deducted from dividend payment) that can be offset against the total income tax payable by an entity.

How to use Tax credit in a sentence?

  1. With our household income reducing following tax code changes, the tax credit is vital.

Meaning of Tax credit & Tax credit Definition