Nonrefundable Tax Credits

Apart from the nonrefundable child and dependent care tax credit, child tax credit, education tax credit, there are other nonrefundable tax credits. Below are some more examples of nonrefundable tax credits.

Adoption tax credit

A tax credit of up to $11,390 is allowed for qualifying expenses paid to adopt an eligible child. If the child has special needs, he or she must be a US citizen or US resident including D.C. and US possessions and the stat must determine that the child won't be adopted unless the adoption assistance is provided. Either the IRS tax form 1040A or 1040 can be used to claim this nonrefundable tax credit.

Tax credit for the elderly or the disabled

A taxpayer who is 65 years old or older may be eligible for the tax credit for the elderly. Likewise, a taxpayer who is under age 65, retired on permanent and total disability and received taxable disability income may also be eligible for the tax credit for the disabled despite not yet reaching retirement age. Either the IRS tax form 1040A or 1040 can be used to claim this nonrefundable tax credit.

Credit for mortgage interest

A mortgage credit certificate issued by state and local governments may entitle a certificate holder to a  mortgage interest credit. The IRS tax form 1040 can be used to claim the credit for mortgage interest. This mortgage certificate must be used in connection with the:

• purchase,
• qualified rehabilitation or
• qualified home improvement of the certificate holder's main home

Foreign tax credit

Generally, the taxpayer can choose to claim income taxes paid during the year to a foreign country or US possession as a credit against US income tax. Use IRS tax form 1040 to claim the foreign tax credit.