TAX CREDIT

tax credit.An amount subtracted directly from one’s total tax liability, dollar for dollar, as opposed to a deduction from gross income. — Often shortened to credit. Cf. DEDUCTION(2). [Cases: Internal Revenue 3520–3537; Taxation 1047. C.J.S. Internal Revenue §§ 58, 336–357, 489–492; Taxation § 1758.] child- and dependent-care tax credit.A tax credit available to a person who is employed full-time and who maintains a household for a dependent child or a disabled spouse or dependent. [Cases: Internal Revenue 3520, 3534; Taxation 1047. C.J.S. Internal Revenue §§ 58, 336–338, 341–343, 345, 347, 354, 489; Taxation § 1758.]
[Blacks Law 8th]