Carryback is a tax provision allowing deductions or credits of one taxable year that cannot be used to reduce tax liability in that year to be applied against tax liability in an earlier year or years.
Carryforward refers to a provision in tax law allowing individuals or corporations to apply an unused deduction, credit, or loss from one tax year to future tax years, effectively reducing future taxable income or taxes owed.
A nonrefundable tax credit allowed for a percentage of the expenses incurred for household services or care of a child or other dependent, where a taxpayer maintains a household that includes one or more dependents who are under 13 years of age or mentally or physically incapacitated. The percentage of credit varies inversely with the taxpayer's adjusted gross income (AGI) between $15,000 and $43,000.
The Child and Dependent Care Credit is a non-refundable tax credit in the United States designed to help families offset the cost of care for children and dependents while they work or look for work.
A Claim for Refund is a request made by taxpayers to the IRS seeking a refund for taxes paid in prior years, often due to errors or the availability of carryback losses or credits.
A tax credit available to eligible taxpayers who are elderly, permanently disabled, or both, offering a maximum allowable credit of up to $1,125.
The Foreign Tax Deduction allows individuals to deduct foreign income taxes paid or accrued from their U.S. income tax, or alternatively, apply the taxes as a credit against U.S. income tax liabilities.
HM Revenue and Customs (HMRC) is the UK government department responsible for the care, management, and collection of direct and indirect taxes, National Insurance contributions, and customs and excise duties within the UK. It was established from a merger of the Board of Inland Revenue and the Board of Customs and Excise in April 2005.
Modified Adjusted Gross Income (MAGI) is a measure used by the IRS to determine eligibility for certain tax credits, deductions, and additional taxes. It starts with Adjusted Gross Income (AGI) from federal Form 1040 and adds back certain tax-exempt interest income and other deductions.
Recapture is the process of taxing at ordinary rates the portion of the gain on a sale that represents prior depreciation allowances or prior tax credits, thereby increasing the taxable income of the seller.
Social Security credits determine a person's eligibility for Social Security programs. Credits are earned by working in a covered job and by paying Social Security taxes.
The Supplemental Young Child Credit is a component of tax policy aimed at providing additional financial support to families with young children. This credit is often integrated within broader tax credit programs, such as the Earned Income Tax Credit (EITC) in the United States, to reduce the tax burden for qualifying taxpayers with dependent children.
A non-refundable tax credit designed to support elderly and disabled taxpayers by reducing their federal tax liability.
A tax incentive is a feature of the taxation system that encourages or discourages certain economic activities.
A tax shelter, also known as a tax shield, is any financial arrangement made to legally lower an individual or a corporation's tax liabilities. These shelters can involve transactions or methods that result in deductions, credits, or reductions in taxable income.
A tax voucher is a document provided by an organization, typically to its shareholders, that outlines details of the dividend income and any associated tax credits. It assists in accurately reporting income for tax purposes.
