what is a tax break 
the term tax break refers to a benefit the government offers that reduces your total tax liability tax breaks are made possible by tax laws and typically come in the form of credits and deductions other tax breaks include exemptions and excluding certain types of income from your state or federal tax return tax breaks also refer to the favorable tax treatment certain groups receive churches and religious organizations for example are generally exempt from federal state and local income and property taxes among other tax perks 1 likewise people affected by natural disasters receive tax breaks in the form of filing and payment extensions penalty and interest waivers and deductions for casualty and theft losses 