Vanessa A
Employee Tax Expert

Deductions & credits

A nonrefundable credit applies when you have no tax liability or less liability than your credit.  This would be the reason you have a carry over from last year.  You did not have enough tax liability to fully use the credit. Look at line 16 on your 1040, then also look at line 24. If the amount on line 16 is less than the full credit, then this is the maximum amount of the credit you use this year will be that number.  If you have other credits, that may also reduce the tax liability, this may also reduce the amount of the credit you receive.  You will find this on line 24.  If line 24 is $0, then you received one of more credits that brought your taxes down to $0.  If this is the case, and you had multiple nonrefundable credits, you may not get the full credit for one or more of the credits. 

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