Is a company: no
Is a proper noun: no
- tax advantage
- Revenue Canada
- tax benefit
- tax aid
Definition of Tax Credit
- Tax credits are much like credits you get from a store. You use the credit to reduce the amount of the tax you owe. Tax credits are more valuable than deductions because they directly reduce the amount of tax you owe, rather than reducing the amount of income that is taxed.
Related Terms and Acronyms
- Child Tax Credit (CTC) — Bank,
➥ See Canada Child Tax Benefit (CCTB).
- A tax break for those who claim eligible dependent children on their tax returns.
- Filing Extension — Bank,
- An additional amount of time to file your return. A filing extension, however, does not give you more time to pay your taxes.
- Property Tax Credit (PTC) — Acronym, Canada,
- Refundable tax benefit claimed on the personal income tax return designed to provide assistance for Canadians with low to moderate incomes.
- Non-refundable Credit — Bank,
- Tax credits reduce your tax liability dollar-for-dollar. Non-refundable credits can get your tax bill down to zero.
- Foreign Tax Credit (FTC) — Acronym, Canada,
➥ Form T2209 - Federal Foreign Tax Credits.
- This tax credit is for foreign income or profits taxes you paid on income you received from outside Canada and reported on your Canadian tax return.
- Income Tax — Bank,
- The main source of revenue for the federal government and many Provinces. The tax is based on your earned and unearned income. The amount or percentage taxed is based on the amount of income, using the governments graduated tax scale.
- Short Tax Year — Bank,
- A tax period less than 12 months long, resulting from a business start-up or the transition to a tax year ending on a different date.
- Investment Tax Credit (ITC) — Acronym, Canada,
- Tax Liability — Bank,
- The total amount of tax you owe.
- Home Renovation Tax Credit (HRTC) — Acronym, Canada, Important,
- Tax Deduction — Bank,
- An expense that governments allow you to subtract from your income before computing your income tax.
- Circuit Breaker — Definition,
- A tax credit that reduces property taxes for the elderly and permanently disabled. The credit is dependent on the amount of income earned which means the more you make, the lower the credit.
- An electrical device used to turn power off and on in sectors of a building and to limit the flow of electricity through a circuit for safety purposes.