It is hard to understand at times.
IT IS TRUE that this is not a "refundable credit" which means if you owe $2 in tax, this two dollar credit would bring your tax to zero.
If you owed $10, this two dollar credit would bring your tax due to $8
And if you owed $1, this $2 dollar credit would bring your tax to zero and that would be it.
Now let's say you owe $10, but you also get a "refundable credit", lets say the Child Tax Credit or Earned Income Tax Credit, and say the credit is $3,000.
Your refund would show as 2,990. (the 3,000 credit minus the 10 you owe)
NOW you enter this Mortgage Interest Credit worth $2.
Now this 2 dollars goes towards the 10 you owe, so you only owe 8.
Now the 3,000 (refundable) credit is (3,000 credit minus the 8 you owe) and your refund is 2,992.
The refund went up, because the tax you owe went down.
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