A more thorough explanation:

The unified estate-and-gift tax credit is a type of tax credit that is applied against the federal unified transfer tax. This credit is subtracted directly from one's total tax liability, dollar for dollar, as opposed to a deduction from gross income.

For example, if someone owes $10,000 in federal estate and gift taxes, and they have a unified estate-and-gift tax credit of $5,000, they will only have to pay $5,000 in taxes.

Another example of a tax credit is the child- and dependent-care tax credit, which is available to a person who is employed full-time and who maintains a household for a dependent child or a disabled spouse or dependent. This credit can help offset the cost of childcare expenses.

The earned-income credit is another type of tax credit that is available to low-income workers with dependent children. This credit is refundable, which means that if the credit exceeds the total tax liability, the taxpayer will receive a refund for the difference.

Overall, tax credits can help reduce the amount of taxes that someone owes, and can provide financial relief for certain expenses or situations.