Tax Break

Filed Under » , ,
Dictionary Says

Definition of 'Tax Break'

A tax break is a savings on a taxpayer's liability. A tax break provides a savings through tax deductions, tax credits, tax exemptions and other incentives. An example of a tax break is the First-Time Homebuyer Tax Credit which provided a tax credit up to $8,000 for qualified purchasers of primary residences on their 2009 and 2010 tax returns.
Investopedia Says

Investopedia explains 'Tax Break'

Tax breaks can greatly reduce a taxpayer's liability. Deductions are expenses that can be subtracted from gross income to reduce taxable income; credits reduce tax liability dollar-for-dollar and have a greater impact than deductions; exemptions occur where a tax for a certain item or type of income is reduced or eliminated.

Articles Of Interest

  1.

    Common Tax Mistakes To Avoid

    Find out what mistakes people often make on their returns, and how to avoid them on yours.

  2. Simple Last-Minute Tax Tips

    A little preparation and organization can take the stress out of last-minute tax filing.

  3. Tax Deductions You May Be Missing

    Knowing the tax deductions you're entitled to can make or break your bank account.

  4. The Ultimate Tax-Time Checklist

    Find out what information you need to pull together before filling out your return.

  5. 5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.

  6. Student Tax Breaks

    Education bills may not be as stressful as you think - these student tax breaks can help!

  7. Give To Charity; Slash Your Tax Payment

    Being generous has never been more (financially) rewarding!

  8. 10 Most Overlooked Tax Deductions

    The receipts you cram into your wallet could be replaced with cash come tax season.

  9. Cut Taxes By Reporting Property Damage

    Know the options you have for your insured property if and when a disaster strikes.

  10. Which is better for tax deductions, itemization or a standard deduction?

    Each deduction that you claim may result in a decrease in the amount of taxes that you owe. However, whether you receive the maximum possible deduction could depend on whether your deduction ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center