Income tax in the United States including limited liability companies (LLCs), may elect to be treated as a corporation or as a partnership. Distributions from partnerships are not taxed as dividends. Corporate tax is imposed in the U.S. at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Shareholders of a corporation wholly owned by U.S. citizens and resident individuals may elect for the corporation to be taxed similarly to partnerships. Corporate income tax is based on taxable income, which is defined similarly to individual taxable income. Shareholders (including other corporations) of corporations (other than S
Working Tax Credit from the earlier benefit for working families known as Family Credit (FC), which had been in operation since 1986. The WFTC shared its assessment of means and period of renewal (6 months) with FC but moved towards a tax credit approach styled on schemes in other countries, which used an annual declaration of income to assess entitlement for a whole year. Tax credits also replaced the child elements in means tested benefits, the Children's Tax Credit in the tax system, and disabled persons tax credit. In 2014 WTC and CTC combined cost £30 billion per year. The basic operation of