What is a no refundable tax credit??

[bluedeb · Accepted solution]

A non-refundable tax credit is a tax credit that can only reduce a taxpayer's liability to zero (income you are taxed on).  You don't receive it in your refund, it just lowers your income which means you pay less taxes.

[ColeenD3]

There are two types of tax credits. Non-refundable credits reduce your tax. They can't reduce it below zero.

Some credits have a refundable portion. If you use up the non-refundable portion and still have a credit left over, you can get it as part of your refund.

Both the Child Tax Credit (Additional) and the American Opportunity Credit have refundable aspects. The Earned Income Credit is also a refundable credit.

[bluedeb · Accepted solution]

Examples of Non-Refundable Tax Credits

• Saver's credit.
• Lifetime learning credit (LLC)
• Adoption credit.
• Child and dependent care credit.
• Foreign tax credit (FTC)
• Mortgage interest tax credit.
• Elderly and disabled credit.
• Residential energy efficient property credit.