Yes, there are refundable tax credits even if no income tax are due. Refundable tax credits, are treated as payments of tax you made during the year. When the total of these credits is greater than the tax you owe, the IRS sends you a tax refund for the difference.
Here are some examples of refundable tax credits:
- Earned Income Tax Credit (EIC),
- Additional Child Tax Credit,
- American Opportunity Tax Credit,
- Recovery Rebate Tax Credit, and
- Credits for sick leave and Family leave for certain self-employed individuals.
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