This is part of a collection of definitions on Financial Literacy. This defines the term tax credit.
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Algebra >> Expressions, Equations, and Inequalities >> Numerical and Algebraic Expressions

Definition--Financial Literacy--Tax Credit

Tax Credit

Tax Credit

Topic

Financial Literacy

Definition

A tax credit is an amount that taxpayers can subtract directly from taxes owed to the government.

Description

Tax credits are valuable tools for reducing tax liabilities, providing direct reductions in the amount of tax owed. Understanding tax credits is crucial for optimizing tax strategies and maximizing savings. In real-world applications, tax credits can incentivize certain behaviors, such as investing in renewable energy or pursuing higher education. Math education introduces students to the concept of tax credits and their role in financial planning. A teacher might explain, "A tax credit reduces the amount of tax you owe, which can save you money when you file your taxes."

Tax Credit
The Child Tax Credit helps reduce the taxes owed by some families.

For a complete collection of terms related to Financial Literacy click on this link: Financial Literacy Collection.

Common Core Standards CCSS.MATH.CONTENT.HSA.CED.A.1
Grade Range 8 - 10
Curriculum Nodes Algebra
    • Expressions, Equations, and Inequalities
        • Numerical and Algebraic Expressions
Copyright Year 2023
Keywords financial literacy, tax, taxable income, tax deduction, tax credit, income tax, taxes