Tax credit

A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state. It may also be a credit granted in recognition of taxes already paid or a form of state "discount" applied in certain cases. A refundable tax credit is where, if the credit exceeds the taxes due, the government will pay back to the individual the difference. A non-refundable tax credit is where, if the credit exceeds the taxes due, the individual pays nothing but does not receive the difference. Quotes ordered by date [The US should] dramatically expand its current earned-income tax credit, a form of negative income tax that pays low-earners instead of asking them to pay income tax... JPMorganChase CEO Jamie Dimon "Jamie Dimon just doubled down in supporting a little-known tax that pays poor people", Chris Weller, Business Insider (4 Apr 2017) There's a special place in hell for people who prey on children. I've yet to see a valid explanation and I have no reason to doubt the victims' accounts. Ivanka Trump " "Ivanka Trump says child tax credit ‘not a pet project’" (November 15, 2017) Note to Republicans: If we raised the federal minimum wage to $15 per hour, expanded the Earned Income Tax Credit, and created jobs in the areas left behind, then Americans wouldn’t need nutritional assistance to feed their families. Ro Khanna "'Twitter post''" (27 December 2018) We will deliver the largest working- and middle-class tax cut in a generation. Up to $500 a month to help America's families make ends meet Kamala Harris talking about LIFT (Livable Incomes for Families Today) the Middle Class Act, a $3 trillion plan that would provide a tax credit of up to $6,000 per year "Kamala Harris calls her LIFT plan ‘the most significant middle-class tax cut in generations.’ Is it?" (January, 2019) [allow the child-care expenses incurred on Saturdays] to allow (the parent) to hold full-time employment from Monday to Friday a judge in a 2007 tax case "What every parent needs to know about deducting child-care expenses come tax time" (September 13, 2019) You get a tax break for a racehorse, why in God's name couldn't we provide an $8,000 tax credit for everybody who has childcare costs? It would put 720 million women back in the workforce. It would increase the GDP, to sound like a wonk here, by about eight-tenths of one percent. It would grow the economy. Joe Biden "Biden vows tax credit will put '720 million women' back in workforce" (September 17, 2019) [Failing to act could spark an economic catastrophe] Nearly 50 million seniors could stop receiving Social Security checks for a time. Troops could go unpaid. Millions of families who rely on the monthly child tax credit could see delays. In a matter of days, millions of Americans could be strapped for cash Janet Yellen in remarks to the Senate Banking Committee according to "Here’s what the debt limit standoff means for you" (September 28, 2021) Important changes to the Child Tax Credit are helping many families get advance payments of the credit: IRS "Advance Child Tax Credit Payments in 2021" (Updated 07-Oct-2021) See also Taxation External links credit