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LSDefine

Simple English definitions for legal terms

tax credit

Read a random definition: cambist

A quick definition of tax credit:

A tax credit is a way to reduce the amount of taxes you owe. It's different from a tax deduction, which only lowers your taxable income. With a tax credit, the amount is subtracted directly from your tax bill. For example, if you owe $10,000 in taxes and have a tax credit of $1,500, you would only have to pay $8,500. Some tax credits can even give you money back if you don't owe any taxes. Popular tax credits include ones for having children, buying energy-efficient products, and paying for health insurance.

A more thorough explanation:

A tax credit is a type of tax benefit that directly reduces the amount of tax a person owes. Unlike tax deductions, which only reduce taxable income, tax credits are subtracted from the tax liability itself. This means that if a person owes $10,000 in taxes and has a tax credit of $1,500, they would only owe $8,500 in taxes.

Some tax credits are refundable, which means that if the credit exceeds the amount of tax owed, the taxpayer will receive a refund for the difference. For example, if a person owes $1,000 in taxes but has a refundable tax credit of $3,000, they would receive a $2,000 tax refund from the IRS.

Examples of tax credits include:

  • Child tax credit
  • Health insurance premium tax credit
  • Energy efficiency tax credit

The child tax credit is a tax credit that parents can claim for each qualifying child. The credit is worth up to $2,000 per child and is partially refundable. This means that if the credit exceeds the amount of tax owed, the taxpayer may receive a refund for up to $1,400 per child.

The health insurance premium tax credit is a tax credit that helps people afford health insurance purchased through the Health Insurance Marketplace. The credit is based on income and household size and can be used to lower monthly premiums or to claim a refund on taxes.

The energy efficiency tax credit is a tax credit that incentivizes homeowners to make energy-efficient improvements to their homes. The credit is worth up to 10% of the cost of eligible improvements, such as insulation, windows, and doors.

Overall, tax credits are a valuable tool for reducing tax liability and increasing tax refunds. By taking advantage of available tax credits, taxpayers can keep more of their hard-earned money.

tax court | Tax Cuts and Jobs Act of 2017 (TCJA)

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2big2fail
20:30
last week
babycat
20:30
he also has a hot tub which is a big deal
Dkk
20:30
Paralegal, military, entrepreneurship, crypto, weird other work experiences like Disney. COVID issues, UCLA issues, drug addiction with my brother.
Dkk
20:31
Yeah, hot tub is the biggest one.
@Dkk: I feel ur pain with no responses yet
2big2fail
20:31
were you a disney channel child star
we are all going crazy
babycat
20:32
he’s bridgit mendler
2big2fail
20:32
im just waiting for pellerdine
2big2fail
20:32
peggerdine
Dkk
20:32
Crypto is booming right now and my friend is CPO of a carbon creidt company on the blockchain and the Canadian government has called him like 3 times this week and he needs help so he actually just gave me a job offer today.
i aspire to be bridgit mendler
Dkk
20:32
Nah, just security there.
wait are u actuaLLY a big crypto guy
m10
20:33
Yeah, like huge into the Cardano space. One of the runner ups for the government on Cardano.
do yall think admissions judges what job you have during ur gap year
babycat
20:34
probably
m10
20:34
My constitution that I wrote is getting submitted on the 30th and if the community likes it, then I will be the first person in the world to write a constitution for on-chain blockchain based governance.
m10
20:34
Right now it's me and two other people.
babycat
20:34
you should meet the urbit guys. they have thielbux I think
damn, i was impatient to hear back from my jobs so i was just gonna work retail but idk if admissions is high brow about that
m10
20:35
@babycat: I may have already met them. I met urbit people like 3-4 years ago. It's just hard to do their stuff.
m10
20:35
Ahh any work is good work to admissions usually.
babycat
20:36
yeah I thought she meant like a year before she applied. if you already applied it doesn’t matter all that much
m10
20:36
Personally, I have only helped launch two coins but my friends want to launch a third. Bigegst project is probably disco solaris: https://www.jpg.store/collection/moebiuspioneersdressed
ohh yeah i mean right now cuz im still waiting and i dont like being unemployed but i dont know if theyd be like she works at aerie not a finance firm ew
m10
20:37
And then, the sexy naked ones hehehehe: https://www.jpg.store/collection/moebiuspioneersnakeddiscos
babycat
20:37
@m10: I don’t like that they’re all tied to pictures of people
i also think getting a job faster will help with going crazy over admissions even if its not as "fancy"
m10
20:38
All of what? That's like the only NFT project I worked on that was moderately good @babycat
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