tax benefit (Meaning)
Wordnet
tax benefit (n)
a tax deduction that is granted in order to encourage a particular type of commercial activity
Synonyms & Antonyms of tax benefit
No Synonyms and anytonyms found
tax benefit Sentence Examples
- Investing in a 401(k) plan offers significant tax benefits by reducing the amount of income subject to current taxation.
- Homeowners receive a tax benefit in the form of a mortgage interest deduction, which lowers their taxable income.
- Donating to qualified charities can provide a valuable tax benefit by allowing for itemized deductions on tax returns.
- The child tax credit is a tax benefit that reduces the amount of taxes owed by parents for each eligible child.
- Contributing to a health savings account (HSA) provides a triple tax benefit: tax-free contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
- Investing in energy-efficient home improvements can qualify for tax benefits, such as the Residential Energy Efficient Property Tax Credit.
- Business owners can deduct certain expenses, such as advertising and travel, as tax benefits to reduce their taxable income.
- The earned income tax credit (EITC) is a refundable tax benefit that provides a tax break for low- and moderate-income working individuals.
- Tax-free bonds offer a tax benefit by allowing investors to earn income that is exempt from federal and sometimes state income taxes.
- Retirement savings plans, such as IRAs and 403(b) plans, provide tax benefits by allowing individuals to defer paying taxes on contributions and earnings until retirement.
FAQs About the word tax benefit
a tax deduction that is granted in order to encourage a particular type of commercial activity
No synonyms found.
No antonyms found.
Investing in a 401(k) plan offers significant tax benefits by reducing the amount of income subject to current taxation.
Homeowners receive a tax benefit in the form of a mortgage interest deduction, which lowers their taxable income.
Donating to qualified charities can provide a valuable tax benefit by allowing for itemized deductions on tax returns.
The child tax credit is a tax benefit that reduces the amount of taxes owed by parents for each eligible child.
