A Double Taxation Agreement (DTA) is an agreement between two countries aimed at preventing the same income from being taxed twice. These agreements offer various forms of double taxation relief to companies or individuals who are subject to tax in both countries.
The Earned Income Tax Credit (EITC) is a refundable tax credit aimed at helping low- to moderate-income working individuals and families, particularly those with children. It serves to reduce the amount of tax owed and may result in a refund.
The gross dividend refers to the total amount a company distributes to its shareholders before any withholding taxes or other deductions.
A historic structure is a building officially recognized for its historic significance. Such structures may qualify for special tax credits aimed at encouraging their preservation and rehabilitation.
The Homebuyer Tax Credit was a limited-time program enacted in 2009 to encourage first-time homebuyers to purchase homes by offering a tax credit of up to $8,000.
The Lifetime Learning Credit is a tax credit available to students of any age for any type of study, aimed at offsetting education-related expenses. Worth up to $2,000, it can significantly reduce the amount of tax owed by taxpayers who qualify.
Net Dividend refers to the dividend paid by a company to its shareholders after excluding the tax credit received by the shareholders.
A historical notion referring to any dividend or other distribution from company assets to shareholders that carried a tax credit, allowing shareholders to offset this against their tax liability. This system was replaced by the dividend tax system in April 2016.
An overview of Recoverable Advance Corporation Tax (ACT), its purpose, and its eventual abolition in the context of corporate taxation practices.
A refundable credit is a tax credit that is paid to a taxpayer even if the amount of the credit exceeds the taxpayer's total tax liability. Notable examples include the Earned Income Tax Credit (EITC) and taxes withheld on wages.
A tax advantage is a benefit that individuals and businesses experience when they are eligible for a reduction in a charge to taxation, which can arise through exemptions, deductions, credits, or deferrals.
A tax break refers to a reduction in tax liability that the government offers to stimulate or incentivize particular economic activities or behaviors.
A tax credit is a tax incentive that allows certain taxpayers to subtract the amount of the credit from the total they owe the state. It can be used in various contexts such as dividends paid by a company, allowances against a tax liability, and social security payments in the UK.
A non-refundable tax credit designed to support elderly and disabled taxpayers by reducing their federal tax liability.
A tax preference item refers to a specific item of income, tax deduction, or tax credit that is considered to provide an extra benefit under federal tax law. These items are identified as potentially leading to excessively low tax liability for some taxpayers, which is why the Alternative Minimum Tax (AMT) is imposed to ensure a minimum tax is paid.
A tax credit available to employers for wages paid to employees hired from certain targeted groups of hard-to-employ individuals. Generally, the credit is 40% of the first $6,000 of qualified wages ($3,000 for qualified summer youth employees) paid to each member of a targeted group during the first year of employment, and 25% in the case of wages attributable to individuals meeting only minimum employment levels.
