A tax benefit is an allowable deduction or credit on a tax return intended to reduce a taxpayer's burden

while typically supporting certain types of commercial activity. A tax benefit allows some adjustment
benefiting a taxpayer's tax liability.

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.

Tax benefits come in the form of deductions, credits, and exclusions, each of which has a different
structure and a different effect on individual income tax liabilities.

Taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in
almost every country of the world, primarily to raise revenue for government expenditures, although
they serve other purposes as well.

What it is:

A tax benefit is any tax advantage given by the IRS to a taxpayer that reduces his or her tax burden. It's
also the name of an IRS rule requiring companies to pay taxes on income that was previously written off
but is subsequently recovered.

An income tax is a tax imposed on individuals or entities (taxpayers) that varies with respective income
or profits (taxable income). Income tax generally is computed as the product of a tax rate times taxable
income. Taxation rates may vary by type or characteristics of the taxpayer.

The tax rate may increase as taxable income increases (referred to as graduated or progressive rates).
The tax imposed on companies is usually known as corporate tax and is levied at a flat rate. However,
individuals are taxed at various rates according to the band in which they fall. Further, the partnership
firms are also taxed at flat rate. Most jurisdictions exempt locally organized charitable organizations from
tax. Capital gains may be taxed at different rates than other income. Credits of various sorts may be
allowed that reduce tax. Some jurisdictions impose the higher of an income tax or a tax on an alternative
base or measure of income.