Tax Credits

Some tax credits are refundable while other tax credits are nonrefundable. Taxpayers love refundable tax credits because they are like money directly into their pocket whereas nonrefundable tax credits can only decrease their tax liability. If they don't owe any taxes, then the nonrefundable tax credit is useless to them, unless they qualify for additional child tax credit (not the child tax credit but the additional child tax credit).

IRS Federal income Tax Credits

• Federal Tax Credits

Summary:

• Which Tax Credits Can I Claim?
• Refundable and Nonrefundable Tax Credits
• What can a Married Filing Separately Taxpayer Claim?
• How Much Tax Credits Do I Get?

1) Earned income tax credit (EIC)

• What is Earned Income Tax Credit?
• Earned Income Credit Requirements, additional Earned Income Credit Rules, Who is a Qualifying Child for the EIC?
• Penalty for Filing False EIC
• Who Qualifies for Earned Income Credit?
• What Does Earned Income Credit Mean on the 1040EZ?
• Illegal Aliens & Earned Income Tax Credit
• 2007 Earned Income Credit Table
• Earned Income Credit Guidelines

2) Child and Dependent Care Tax credit

• What is Child and Dependent Care Credit?

3) Child tax credit and additional child tax credit

• What is Child Tax Credit?
• Child Tax Credit for Divorced or Separated Parents
• What is Additional Child Tax Credit?

4) Education tax credit and other tax credits

• Education Tax Credit
• Qualified Education Expenses
• What is the Hope Credit?
• Explain Lifetime Learning Credit
• Hope and Lifetime Learning Credit
• What is Savers Credit?
• Residential Energy Tax Credit
• Other Nonrefundable Tax Credits

5) Elderly or the Disabled Tax Credits

• Elderly Tax Credit
• Who can claim Tax Credit for the Disabled?