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Deductions & credits
Child and dependent care is a deduction that lowers your tax liability but cannot go below zero tax liability. If your tax liability is less than you dependent care credit, you will lose the excess because it is non-refundable.
The child tax credit also reduces your tax liability. Unlike the dependent care, it has another part, the Additional Child Tax Credit which IS a refundable credit. Some people pay nothing in taxes and get back thousands between the EIC and ACTC which are both refundable. The IRS is making sure lower income taxpayers get extra help.
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‎January 30, 2020
4:43 PM