tax credit

noun

: an amount of money that is subtracted from taxes owed
Families with children in college will receive a tax credit this year.

Examples of tax credit in a Sentence

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Hobart homeowners who apply for the $500 tax credit must be 65 years of age or older and have a homestead exemption on their dwelling. — Jim Masters, Chicago Tribune, 27 Oct. 2026 LendingTree’s model values the federal child tax credit at $2,200 per child, up from $2,000. — Martie Bowser, Fortune, 24 Oct. 2026 Because of the current minimum budget threshold of $1M an episode, the WWN series does not qualify for a California tax credit, but its producers wanted to use Los Angeles cast and crew instead of going to New Mexico or New Jersey. — Nellie Andreeva, Deadline, 23 Oct. 2026 The current president of the Hartford Federation of Teachers, Corey Moses, criticized the tax credit as an effort to privatize schooling in America. — Theo Peck-Suzuki, Hartford Courant, 22 Oct. 2026 See All Example Sentences for tax credit

Rhymes for tax credit

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Browse Nearby Words

Taxco
tax credit
tax-deductible
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Cite this Entry

“Tax credit.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tax%20credit. Accessed 31 Oct. 2026.

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Legal Definition

tax credit

noun
: an amount that may be subtracted from the sum of tax otherwise due and that is distinguished from a deduction applied to gross income in the calculation of taxable income compare exemption
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