tax allowances
Permitted earnings exclusions
Tax allowances are amounts that reduce taxable income, lowering the total tax a person or business owes.
Governments provide these allowances to encourage certain behaviors—like saving for retirement, owning a home, or supporting dependents—or simply to ensure basic income remains untaxed.
The new tax allowances for childcare expenses helped offset our costs.
The term is more common in British usage; Americans typically say tax deductions or exemptions for similar concepts.
- tax-free incomeRevenue without government deductions
- earned income creditTax benefit for low earners
- tax reliefReduction in owed levies
- tax bracketTaxable income category
- tax codeLaws governing taxation
marriage penalty · child tax credit · dependent care · tax break · write-off · tax shelter · standard deduction · itemized deductions
- taxationtax, income tax, sales tax, tax return, tax refund
- Irish taxUSC, tax rates, standard rate, higher rate, tax credits
- UK taxesVAT, income tax, council tax, inheritance tax, corporation tax
tax allowancestax liabilities
Money owed to government
tax obligations · tax penalties · tax burden · tax levies · tax assessments
allowance, taxes, taxed, taxing, taxation, taxable, taxpayer, allow, allows