A tax credit is an amount taxpayers claim on their tax return generally to reduce their income tax. Eligible taxpayers can use them to potentially reduce their tax bill and increase their refund.

Aug 31, 2025 · What Is a Tax Credit? The term “tax credit” refers to an amount of money that taxpayers can subtract directly from the taxes they owe. This is different from tax deductions, which lower the...

Nov 11, 2025 · What is a tax credit? Separate from tax deductions, tax credits can help reduce your tax burden. Learn about common federal tax credits and how they work.

Nov 15, 2025 · Tax credits are dollar-for-dollar reductions on the amount of income tax you owe. Depending on your expenses and financial situation, you may be eligible for a range of tax …

Dec 12, 2025 · What is a tax credit? A tax credit is a dollar-for-dollar reduction of a taxpayer's bill. This can reduce the taxes owed or, in some cases, increase a refund amount.

Mar 21, 2025 · “A tax credit is a dollar-for-dollar reduction in one’s tax liability,” says Logan Allec, a certified public accountant and owner of tax relief company Choice Tax Relief. “A tax deduction...

Apr 14, 2025 · Tax credits are a type of tax benefit that lowers your income tax bill dollar-for- dollar and, in some cases, can increase your tax refund. There are several different tax credits available to …

Tax credits are matched dollar for dollar against the amount you owe. There are dozens of tax credits available for families, college students, homeowners, and more. Refundable credits allow you to get …

Apr 25, 2025 · Tax credits are a powerful way to save money on taxes. Each dollar of a tax credit is subtracted directly from the amount of tax you owe the IRS. And some tax credits are refundable, …

A tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income rather than the taxpayer’s tax bill directly.