Tax Benefit
 |
Definition of 'Tax Benefit'A tax benefit is an allowable deduction on a tax return intended to reduce a taxpayer's burden while typically supporting certain types of commercial activity. A tax benefit allows some type of adjustment benefiting a taxpayer's tax liability. |
 |
Investopedia explains 'Tax Benefit'Tax benefits provide an advantage to the taxpayer while typically benefiting another entity. An example of a tax benefit is an energy tax credit; taxpayers can qualify for certain tax credits for installing energy efficient systems in their homes, which benefits the environment while reducing the demand for fuel. Quite often tax benefits may be only available for a certain time period or tax year. |
Related Definitions
Articles Of Interest
-
Tax Credits And Deductions For Parents
Your children can help you save on your taxes with these credits and deductions. -
5 Tax Credits You Shouldn't Miss
If you're not taking advantage of these deductions, you could be missing out on tax savings. -
Give Your Taxes Some Credit
A few tax credits can greatly increase the amount of money you get back on your return. -
Cut Employee Stock Option Taxes With AMT Credit
Learn how refundable AMT credits can help you save on taxes, AMT bills and more. -
Has Income Tax Become A Class Tax On The Poor?
With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ... -
Possible Effects Of The Online Retail Tax
The U.S. Senate has passed a bill that will impose a sales tax on online retailers. Discover how the Marketplace Fairness Act could affect your bottom line. -
How To Get The Most Out Of Hiring An Accountant
When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ... -
How The 2014 Obama Budget Could Affect Your Finances
Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ... -
IRS Special Enrollment Examination (SEE) Study Guide
The enrolled agent status is the highest credential awarded by the IRS. -
Inaccurate Tax Return, Now What?
If the IRS finds errors, it will cost you. Find out how to fix them, and how to prevent them in the first place.
Free Annual Reports
