There are two types of credits that can be claimed on your tax return for dependents.
Refundable credits- can be claimed even if you do not have any taxes to pay.
--Earned income credit requires earned income
--Additional child tax credit requires you to claim a dependent
--If you have post secondary education expenses, you may be able to claim the refundable portion of the American Opportunity education credit.
Nonrefundable credits-- are used to offset taxes owed. If you don't have any taxes to pay, you would not qualify for non-refundable credits.
--Child Tax Credit requires you have tax liability. If you do not have any taxes to pay, this credit does not calculate on the return.
--Any nonrefundable credit will require tax liability. Some nonrefundable credits do carryover to future years and are used in the year you do have tax liability to pay. Each carryover may have different expiration dates if not used.
