What is a 'Tax Benefit'

A tax benefit is an allowable deduction on a tax return intended to reduce a taxpayer's burden while typically supporting certain types of commercial activity. A tax benefit allows some type of adjustment benefiting a taxpayer's tax liability.

Explaining 'Tax Benefit'

Tax benefits provide an advantage to the taxpayer while typically benefiting another entity. An example of a tax benefit is an energy tax credit; taxpayers can qualify for certain tax credits for installing energy efficient systems in their homes, which benefits the environment while reducing the demand for fuel. Quite often tax benefits may be only available for a certain time period or tax year.

Further Reading

How big are the tax benefits of debt?
onlinelibrary.wiley.com [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …

Accounting for tax benefits of employee stock options and implications for research
meridian.allenpress.com [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …

Firm and investor responses to uncertain tax benefit disclosure requirements
meridian.allenpress.com [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …

The tax benefit of income smoothing
www.sciencedirect.com [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …

Disqualifying dispositions of incentive stock options: Tax benefits versus financial reporting costs
www.jstor.org [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …

Seeking shelter: Empirically modeling tax shelters using financial statement information
meridian.allenpress.com [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …

Tax planning, regulatory capital planning, and financial reporting strategy for commercial banks
academic.oup.com [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …

Financial constraints and cash tax savings
meridian.allenpress.com [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …

Taxes and corporate finance: A review
academic.oup.com [PDF]
… namely the theory of optimum taxation, public choice theory, general equilibrium analysis of incidence, numerical tax- benefit modelling, and … "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP … "Optimal Universal and Categorical Benefits with Classification …