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Credit

Credit

Credit may have one of the following meanings, depending the context of the term:

1. for taxes, a dollar-for-dollar reduction in a person's tax liability. See also specific credits, including child and dependent care credit; investment tax credit; low- income housing credit.

2. in accounting, an entry that increases liabilities, owners' equity, revenue, and gains, while decreasing assets and expenses.

Description and Definition of Credit

A tax credit directly reduces the tax you owe, as opposed to a deduction that reduces income subject to tax. A credit is a direct dollar-for-dollar reduction of your income tax. You can get tax credits for items such as child care expenses and the earned income credit for low-income taxpayers.

Credit Issue

You may find information about Credit in this Tax Platform of the American Encyclopedia of Law.

Resources

See Also

Further Reading

Credits

Credits

The Credits are, under the Social Security Act, the determiners of eligibility for Social Security programs. A person earns credits by working in a job covered by Social Security and by paying Social Security taxes. In 1991, one credit was earned for each $540 in Social Security earnings. A maximum of four credits can be earned in a year. A minimum of 40 credits is required to qualify for retirement benefits.

IRS Publications about Credits

  • Fuel Tax Credits and Refunds
  • Foreign Tax Credit for Individuals
  • Credit for the Elderly or the Disabled
  • Earned Income Credit
  • Child Tax Credit
  • Code Sections about Credits

  • Sec. 22. Credit for the elderly and the permanently and totally disabled
  • Sec. 24. Child tax credit
  • Sec. 27. Taxes of foreign countries and possessions of the United States; possession tax credit
  • Sec. 30A. Puerto Rico economic activity credit
  • Sec. 30B. Alternative motor vehicle credit
  • Sec. 30C. Alternative fuel vehicle refueling property credit
  • Sec. 38. General business credit
  • Sec. 41. Credit for increasing research activities
  • Sec. 42. Low-income housing credit
  • Sec. 43. Enhanced oil recovery credit
  • Sec. 45A. Indian employment credit
  • Sec. 45B. Credit for portion of employer social security taxes paid with respect to employee cash tips
  • Sec. 45D. New markets tax credit
  • Sec. 45F. Employer-provided child care credit
  • Sec. 45G. Railroad track maintenance credit
  • Sec. 45H. Credit for production of low sulfur diesel fuel
  • Sec. 45I. Credit for producing oil and gas from marginal wells
  • Sec. 45J. Credit for production from advanced nuclear power facilities
  • Sec. 45K. Credit for producing fuel from a nonconventional source
  • Sec. 45L. New Energy Efficient Home Credit
  • Sec. 45M. Energy Efficient Appliance Credit
  • Sec. 46. Amount of credit
  • Sec. 47. Rehabilitation credit
  • Sec. 48. Energy credit
  • Sec. 48A. Qualifying advanced coal project credit
  • Sec. 48B. Qualifying gasification project credit
  • Sec. 51. Amount of credit
  • Sec. 53. Credit for prior year minimum tax liability
  • Sec. 54. Credit to holders of clean renewable energy bonds.
  • Sec. 77. Commodity credit loans
  • Sec. 78. Dividends received from certain foreign corporations by domestic corporations choosing foreign tax credit
  • Sec. 409. Qualifications for tax credit employee stock ownership plans
  • Sec. 418C. Overburden credit against minimum contribution requirement
  • Sec. 841. Credit for foreign taxes
  • Sec. 853. Foreign tax credit allowed to shareholders
  • Sec. 902. Deemed paid credit where domestic corporation owns 10 percent or more of voting stock of foreign corporation
  • Sec. 903. Credit for taxes in lieu of income, etc., taxes
  • Sec. 904. Limitation on credit
  • Sec. 908. Reduction of credit for participation in or co-operation with an international boycott
  • Sec. 936. Puerto Rico and possession tax credit
  • Sec. 960. Special rules for foreign tax credit
  • Sec. 1396. Empowerment zone employment credit
  • Sec. 1397E. Credit to holders of qualified zone academy bonds
  • Sec. 1400C. First-time homebuyer credit for District of Columbia
  • Sec. 1400H. Renewal community employment credit
  • Sec. 1462. Withheld tax as credit to recipient of income
  • Sec. 1551. Disallowance of the benefits of the graduated corporate rates and accumulated earnings credit
  • Sec. 2010. Unified credit against estate tax
  • Sec. 2011. Credit for State death taxes
  • Sec. 2012. Credit for gift tax
  • Sec. 2013. Credit for tax on prior transfers
  • Sec. 2014. Credit for foreign death taxes
  • Sec. 2015. Credit for death taxes on remainders
  • Sec. 2016. Recovery of taxes claimed as credit
  • Sec. 2505. Unified credit against gift tax
  • Sec. 2604. Credit for certain State taxes
  • Sec. 3303. Conditions of additional credit allowance
  • Sec. 3507. Advance payment of earned income credit
  • Sec. 5010. Credit for wine content and for flavors content
  • Sec. 5011. Income Tax Credit for Average Cost of Carrying Excise Tax.
  • Sec. 5056. Refund and credit of tax, or relief from liability
  • Sec. 5705. Credit, refund, or allowance of tax
  • Sec. 6407. Date of allowance of refund or credit
  • Sec. 6511. Limitations on credit or refund
  • Sec. 6709. Penalties with respect to mortgage credit certificates
  • Sec. 7486. Refund, credit, or abatement of amounts disallowed
  • Sec. 6429. Advance Payment of Portion of Increased Child Credit for 2003.
  • Sec. 7527. Advance payment of credit for health insurance costs of eligible individuals
  • Sec. 6050T. Returns relating to credit for health insurance costs of eligible individuals
  • Sec. 6426. Credit for certain alternative fuel mixtures
  • See also other Tax Terms and Definitions in the U.S.

    Tax credits.

    Credit for Fica Taxes Paid

    Credit for Fica Taxes Paid

    About Credit for Fica Taxes Paid:

    for food and beverage establishments, a tax credit equal to the employer's Federal Insurance Contribution Act obligation (e.g., 7.65%) attributable to reported tips in excess of those treated as wages for purposes of satisfying the minimum wage provisions. To prevent double dipping, no deduction is allowed for any amount taken into account in calculating the credit. Former IRC (check if this IRC provision is current here) §45B.

    Crane Doctrine

    Crane Doctrine

    Crane Doctrine may have one of the following meanings, depending the context of the term:

    1. the judicial doctrine that liabilities assumed in the acquisition of property are part of the basis of that property.

    2. the doctrine that relief of debt may be treated as receipt of money when debts are assumed (e.g., included in the amount realized) in a transaction. Crane v. Comm., 331 U.S. 1 (1947).

    Credit for Fuel from A Nonconventional Source

    Credit for Fuel from A Nonconventional Source

    Credit for Fuel from A Nonconventional Source means:
    a credit or other debt instrument of $3 per 5 8 million BTU for the production of oil, gas, and synthetic fuels from nonconventional sources such as coal seams, geopressured brine, shale, tar sands, or biomass. The fuel must be produced and sold from facilities placed in service after 1979 and before 1993, with certain facilities extended to before 1996. The credit is phased out as the average wellhead price for domestic oil rises from $23.50 to $29.50 per barrel.

    Credit for Tax on Prior Transfers

    Credit for Tax on Prior Transfers

    Credit for Tax on Prior Transfers means:
    a credit or other debt instrument allowed against the estate tax for all or a part of the estate tax paid with respect to the transfer of property to the decedent by someone who died within 10 years before or within 2 years after the decedent's death.

    See Inheritance Tax and Inheritance Tax.