Child Tax Credit
Definition
- A tax break allowed individuals who claim eligible dependent children on their tax returns.
Notes
See Canada Child Tax Benefit (CCTB).
Synonyms
tax credit, offset income, deduction
Acronyms
CTC
Related Terms and Acronyms
- Alimony — Definition,
- Monthly payments received by an ex-spouse. Payments must be received continuously for one year to be counted toward qualifying income for a loan.
- Child Support (CS) — Acronym,
- Monthly payments that contribute to the care of a child. Payments must be received continuously for one year to be counted toward qualifying income for a loan.
- Marital Deduction — Definition,
- For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
- Registered Education Savings Plan (RESP) — Acronym, Canada, Very Important,
- An investment vehicle used for a child's post-secondary education.
➥ RESPs are offered by most financial institutions in Canada. - Tax Credit (TC) — Acronym, Important,
- Tax credits are used to reduce the amount of the tax owed. Tax credits are more valuable than deductions because they directly reduce the amount of tax owed, rather than reducing the amount of income that is taxed.
- Tax Deduction — Definition,
- An expense that governments allow you to subtract from your income before computing your income tax.
