A tax credit is an amount taxpayers claim on their tax return generally to reduce their income tax. Eligible taxpayers can use them to potentially reduce their tax bill and increase their refund.

Aug 31, 2025 · What Is a Tax Credit? The term “tax credit” refers to an amount of money that taxpayers can subtract directly from the taxes they owe. This is different from tax deductions, …

Nov 11, 2025 · What is a tax credit? Separate from tax deductions, tax credits can help reduce your tax burden. Learn about common federal tax credits and how they work.

Nov 15, 2025 · A tax credit is a dollar-for-dollar reduction in your income. For example, if your total tax on your return is $1,000 but you are eligible for a $1,000 tax credit, your net liability …

Dec 31, 2024 · A tax credit refers to the specific amount taken away from what a person owes. For example, if you receive a tax credit of $2,000 on a $4,500 tax bill, it would be reduced to …

Dec 12, 2025 · What is a tax credit? A tax credit is a dollar-for-dollar reduction of a taxpayer's bill. This can reduce the taxes owed or, in some cases, increase a refund amount.

Dec 16, 2025 · The credit is a percentage of your New York City taxable income. New York City residents and part-year residents claim this credit directly on their income tax return.