You would have refundable credits when your credits reduce your tax to $0 but you still get the rest of the credit as a refund. For instance, if your tax before application of an earned income credit of $2,000 was $1,000, you would get a refund of the rest of the credit of $1,000. Most credits aren't refundable, you can use them to reduce your tax to $0, but you can't use the rest of the credit to get a refund. A refundable credit is one where you get the rest of the credit as a refund even after your tax is reduced to $0.
Your withholdings are income taxes you have withheld from income you receive, such as wages, pension distributions, social security benefits, etc... You would add that to the refundable amount of credits (refund associated with refundable credits) to determine how much tax you will pay in during the year.
On the second point you are correct, if you pay in 100% of the amount of your income tax from the previous year on a timely basis this year, you will not be penalized for late payment of tax even if you owe more than $1,000 when you file your tax return. The percentage is increased to 110% if your income is over $150,000.
Your other option is to estimate what your tax will be in the current year and pay in 90% of that on a timely basis.
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